A Budget Prepared for a Single Level of Volume Based

question 62

Multiple Choice

A budget prepared for a single level of volume based on management's best estimate of the level of production and sales for the coming period is a:

• A)Flexible budget.
• B)Static budget.
• C)Continuous budget.
• D)Capital budget.

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Definitions:

Clarity of Organizational Plans

The clear and understandable presentation of strategies and objectives by an organization.

Availability of Performance Feedback

The extent to which individuals can obtain information about the quality and effectiveness of their work performance.

Path-Goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the objectives of the group or organization.

Substitutes for Leadership

Situational factors that diminish the importance of leadership by providing guidance or motivation to group members, making direct leadership less necessary.