________ Occur(s)when a Superior Simply Tells Subordinates What Their Budget

question 125

Multiple Choice

________ occur(s) when a superior simply tells subordinates what their budget will be.

• A)Authoritative budgeting
• B)Stretch targets
• C)Consultative budgeting
• D)Budget slack

---

Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Residual Income

Another term for economic value added (EVA).

Opportunity Costs

The cost of foregone alternatives when a decision is made, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Economic Value Added

A measure of a company’s financial performance that calculates the value created beyond the required return of the company’s shareholders.