Which of the Following Is Not an Appropriate Approach to Solving

question 90

Multiple Choice

Which of the following is not an appropriate approach to solving the problem of an annual budget deficiency?

• A) Liquidate enough savings or investments to make up the deficiency
• B) Increase short-term, flexible expenditure items
• C) Renegotiate terms for long-term expense items
• D) Increase income by getting an additional part-time job

---

Definitions:

Support Department Allocations

The process of distributing overhead costs from service departments to producing departments within a company.

Operating Income

Earnings generated from the core business operations, excluding expenses and revenues from non-operating activities.

Profit Margin

Profit margin is a financial ratio that measures the percentage of revenue remaining after all expenses have been deducted. It is a key indicator of a company's financial health and pricing strategy.

Return on Investment

A financial metric that calculates the profitability of an investment by dividing the net profit by the initial cost.