Which Problem Might Be a Result of an Unrealistic Budget

question 14

Multiple Choice

Which problem might be a result of an unrealistic budget?

• A)profitable operations
• B)reduced employee morale
• C)favourable operating activity
• D)minimal differences between actual and budgeted amounts

Recognize the difference between static planning budgets and flexible budgets.

Identify the factors that lead to variances in material and labor costs in production.

Comprehend the role of fixed and variable costs in budgeting and financial performance evaluation.

Understand the process and importance of comparing actual costs and revenues to budgeted amounts.

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Definitions:

Relearning

The process of learning material or skills again, often more quickly than the first time, after some period of forgetting.

Long-Term Memory

The phase of memory responsible for storing information for an extended period, ranging from a few days to a lifetime.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting only a fraction of a second.

Short-Term Memory

The capability to retain a minimal volume of information in an instantly accessible condition for a short time frame.