One Objective of Budgeting Is Motivating Managers To

question 124

Multiple Choice

One objective of budgeting is motivating managers to:

• A) Eliminate variances
• B) Use resources efficiently
• C) Lessen the need for communication
• D) Establish prices for external sales of goods and services

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Definitions:

Retail Inventory Method

An inventory valuation method used in retail, estimating inventory value by relating the end inventory cost to the sales cost.

Ending Inventory

The total value of all inventory items that a business has in stock at the end of an accounting period.

Cost of Goods Sold

The immediate expenses related to manufacturing goods for sale in a business, which encompass both materials and labor costs.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used to calculate cost of goods sold during the period.