Mike Is Creating Next Year's Budget for Centre Corporation

question 37

Multiple Choice

Mike is creating next year's budget for Centre Corporation. He estimates that next year's sales volume will be 5% higher than this year and that the selling price per unit will remain at $75 per unit. He estimates that cost of goods sold will be $40 per unit, based on a purchase agreement the company has signed with its supplier. The company has done business with the supplier for many years. In creating the budget, which of the following tasks is most likely to be open-ended?

• A) Calculating budgeted sales volume
• B) Determining that sales volume will grow by 5%
• C) Calculating budgeted cost of goods sold
• D) Determining that cost of goods sold per unit will be $75 per unit

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Definitions:

Deemphasizing

The act of making something less important or less emphasized in comparison to other aspects.

Bad News

Information that is unpleasant, disappointing, or negative and may have a detrimental impact on the receiver.

Techniques

Specific methods or strategies employed to accomplish a task or achieve a goal effectively.

Buffer

A temporary holding area for data or a means of mitigating the impact of a change or delay.