Budgeting Provides All of the Following EXCEPT

question 179

Multiple Choice

Budgeting provides all of the following EXCEPT:

• A)a means to communicate the organization's short-term goals to its members
• B)support for the management functions of planning and coordination
• C)a means to anticipate problems
• D)an ethical framework for decision making

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Definitions:

Absorption Costing

This accounting technique aggregates the total manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—into the calculation of a product’s price.

Cost-plus Pricing

A pricing strategy where a fixed percentage or a fixed amount is added to the cost price to determine the selling price.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of investment.

Markup

The amount added to the cost of a product to cover expenses and generate profit, often expressed as a percentage of the cost.