A Budget Period Should Be

question 123

Multiple Choice

A budget period should be

• A) monthly.
• B) for a year or more.
• C) long-term.
• D) long enough to provide an obtainable goal under normal business conditions.

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Definitions:

Sales Mix

The combination of different products or services that a company sells, impacting the overall profitability and performance of the business.

CVP Analysis

Short for Cost-Volume-Profit Analysis, a tool that helps determine how changes in costs and volume affect a company's operating income and net income.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.