Four Months into the New Budget It Is Learned That

question 33

Multiple Choice

Four months into the new budget it is learned that there will be a major increase in the cost of raw materials. The most appropriate action is to:

• A) leave the master budget intact.
• B) revise the master budget to incorporate the cost increase in raw materials.
• C) hold the purchasing department responsible for not anticipating the cost increase.
• D) no action is necessary.

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Definitions:

Decisions

The act of making choices or conclusions after considering different options or information.

Political Savvy

The skill of understanding and navigating complex social or organizational politics to achieve goals.

Framing Messages

The process of constructing and presenting information or messages in a way that influences how the audience perceives and interprets them.

Conflict

Occurs when parties disagree over substantive issues or when emotional antagonisms create friction between them.