Which One of the Following Is an Advantage of Using

question 91

Multiple Choice

Which one of the following is an advantage of using participative budgeting?

• A)It is updated daily to reflect current activity.
• B)It assures the company is operating at the activity level of the master budget.
• C)It allows companies to compare the current with the previous year.
• D)Lower level managers are more likely to perceive budgets as fair.

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Definitions:

Law of Demand

A principle that states there is an inverse relationship between the price of a good and the quantity of it buyers are willing to purchase. As the price of a good increases, consumers will wish to purchase less of it. As the price decreases, consumers will wish to purchase more of it.

Tuna Sandwiches

A type of sandwich made primarily with tuna and other ingredients such as mayonnaise and celery.

Demand for Margarine

The consumer desire or market requirement for margarine, reflecting how much of the product people are willing and able to purchase at a given price.

Income Rises

A situation where there is an increase in the amount of earnings received by an individual, household, or economic entity.