Why Are Budgets Useful in the Planning Process

question 17

Multiple Choice

Why are budgets useful in the planning process?

• A)They provide management with information about the company's past performance.
• B)They help communicate goals and provide a basis for evaluation.
• C)They guarantee the company will be profitable if it meets its objectives.
• D)They enable the budget committee to earn their paycheque.

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Definitions:

Ringworm

A fungal infection of the skin, characterized by ring-shaped, red, itchy patches.

Scaly

Characterized by or covered with scales.

Stress Test

A procedure that involves recording an electrocardiogram while the patient is exercising on a stationary bicycle, treadmill, or stair-stepping ergometer, which measures work performed.

Electrical Activity

The movement of electrical charges or signals, crucial for the functioning of nerves and muscle cells, including those in the heart.