A Major Element in Budgetary Control Is

question 107

Multiple Choice

A major element in budgetary control is

• A) the preparation of long-term plans.
• B) the comparison of actual results with planned objectives.
• C) the valuation of inventories.
• D) approval of the budget by the stockholders.

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Definitions:

Producer Surplus

The discrepancy between the price producers agree to sell a good for and the price they actually end up receiving.

Economic Efficiency

A condition in which resources are allocated in the most effective way possible, maximizing outputs from given inputs without waste.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, reflecting an optimal distribution of resources.

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the actual price it sells for.