A Budget Is Useful in the Planning Process Because It

question 90

Multiple Choice

A budget is useful in the planning process because it

• A)determines who is to blame for poor operations.
• B)forces managers to think about goals and objectives and means of achieving them.
• C)identifies budget padding.
• D)creates budget slack.

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Definitions:

MRP of Labor

The Marginal Revenue Product of Labor, representing the additional revenue generated from hiring one more unit of labor.

Market Wage Rate

The prevailing rate of pay for work of a similar nature within a given labor market.

Hiring Labor

The process of finding, selecting, and employing people to work for wages or salaries.

Profit Maximizing

The mechanism through which a firm calculates the price and output level to maximize its profits.