Which One of the Following Would Most Likely Cause an Unrealistic

question 7

Multiple Choice

Which one of the following would most likely cause an unrealistic budget to result?

• A)All levels of management contributed to its development.
• B)The budget has been developed in a participative approach.
• C)The budget was developed after considerable planning.
• D)The budget has been developed in a top-down fashion.

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Definitions:

Optimal Alternative

The best possible choice among various options under consideration, often based on specific criteria or outcomes.

Expected Opportunity Loss

A statistical concept that calculates the expected amount of loss for not choosing the best alternative.

Gross Profits

The financial gain obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company’s production process.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.