The ________ Budget Is Used for Areas of an Organization

question 77

Multiple Choice

The ________ budget is used for areas of an organization that incur expenses but no revenue, such as human resources and other support departments.

• A)sales
• B)production
• C)cost
• D)cash
• E)capital

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Definitions:

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Net Income

The profit resulting after all expenses, taxes, and costs have been deducted from total revenues.

Interest Expense

The cost incurred by an entity for borrowed funds, which can include costs related to bonds, loans, and lines of credit.

Inventory Turnover Ratio

A financial metric indicating how many times a company's inventory is sold and replaced over a specific period.