The Budget Which Begins with an Estimate of Expected Operations

question 19

Multiple Choice

The budget which begins with an estimate of expected operations, based on sales forecasts and plans, is called the:

• A) operating budget.
• B) capital budget.
• C) cash flow budget.
• D) materials purchase budget.
• E) organizational budget.

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Definitions:

Causation

The relationship between cause and effect, where one event (the cause) directly results in another event (the effect).

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services within an economy.

Fallacy of Composition

The erroneous belief or argument that what is true for a part is necessarily true for the whole, or that what holds for individual members of a group must necessarily hold for the group as a whole.

Nearest Exit

The closest point of egress from a building, vehicle, or area, often highlighted as part of safety protocols.