Which of the Following Approvals Will Make the Most Effective

question 8

Multiple Choice

Which of the following approvals will make the most effective environment for budget acceptance?

• A)The budget is prepared by top management.
• B)The budget preparation contains input from all levels of management.
• C)The budget is prepared by the department heads.
• D)Acceptance has nothing to do with who prepares budgets.

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Definitions:

Work in Process Accounts

Accounts that track the costs associated with unfinished goods that are in the process of being manufactured.

Overhead Costs

Indirect expenses related to the general operation of a business, such as rent, utilities, and management salaries, not directly tied to production.

Machine Time

It refers to the duration a machine is utilized for production activities, crucial for calculating manufacturing costs and efficiency.