Which of the Following Statements Is True of Budgeting

question 1

Multiple Choice

Which of the following statements is true of budgeting?

• A) Research suggests that the incremental budgeting approach is most suitable for small to medium-sized enterprises.
• B) Managers typically use budgeting as a planning tool to measure objectives and monitor outcomes.
• C) As a planning tool, budgeting invariably helps managers make good decisions about the integration of organizational levels.
• D) Budgeting processes do not guarantee that managers will make good decisions about organizational priorities.

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Definitions:

Law of Supply

A fundamental principle of economics that states that, all else equal, an increase in price results in an increase in the quantity supplied, and vice versa.

Law of Demand

States that, all else being equal, as the price of a product decreases, the quantity demanded of the product will increase, and vice versa.

Rent Controls

Government-imposed limits on the amount landlords can charge for renting out a property, intended to make housing more affordable.

Rental Housing

Living accommodations for which occupants pay rent to use or occupy land, buildings, or other residential spaces.