Which of the Following Is a Guideline Used by Management

question 191

Multiple Choice

Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?

• A) employing a cost-benefit approach
• B) employing a supply chain approach
• C) employing a six sigma approach
• D) employing a regression approach

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Definitions:

Production Budget

An estimate of the total cost of production, including direct materials, labor, and overheads, planned for a certain period.

Capital Expenditures Budget

A plan for a company's spending on long-term assets, such as buildings, equipment, and machinery, over a certain period.

Inventory Policy

Inventory policy refers to the set of guidelines or rules a company follows to manage its inventory levels, ordering, storage, and replenishment to meet customer demand efficiently.

Projected Sales

The estimated revenue that a company expects to generate from goods or services over a specific period.