Which of the Following Is Not an Example of Conflicts

question 46

Multiple Choice

Which of the following is not an example of conflicts created in the budgeting process?

• A)Because firms want to use the most up-to-date information about local operating conditions, they ask lower-level employees for this information, but these employees may not be forthright in sharing their information.
• B)Because a production manager may be overly pessimistic about expected costs, the quality of information used to plan costs may be reduced.
• C)Downplaying expected sales may lead to more achievable targets for the managers, but reduce the quality of information used to plan sales.
• D)The planned targets in budgets become the benchmark for actual results, thereby facilitating control.
• E)All of the above are examples of conflicts in the budgeting process.

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Definitions:

Customer Cost Analysis

The process of evaluating all costs involved in acquiring and maintaining customers against the revenue they generate.

Time-Driven Activity-Based Costing

A cost accounting method that assigns costs based on the time resources are used by activities, using time as the driving factor.

Customer Support Department

A specialized division within a company dedicated to addressing customer inquiries, concerns, and issues, ensuring customer satisfaction.

Customer Cost Analysis

An evaluation of the total cost incurred by a business to serve a customer, including product, service, and indirect costs.