A Budget Is Most Likely to Be Effective If

question 68

Multiple Choice

A budget is most likely to be effective if

• A) it is used to assess blame when things do not occur according to plans.
• B) it is not used to evaluate a manager's performance.
• C) employees and managers at the lower levels do not get involved in the budgeting process.
• D) it has top management support.

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Definitions:

Stars

In business, it refers to products or business units with high market growth and high market share in a competitive industry.

Growth

Describes the process of increasing in size, value, or importance, typically used in economic and business contexts to refer to the expansion of companies or economies.

Resource Investments

The allocation of resources, such as time, money, or materials, into projects or activities with the expectation of achieving returns.

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, thereby controlling production of its supplies.