During Situation Analysis,a Useful Budgeting Technique to Determine a Ballpark

question 26

Multiple Choice

During situation analysis,a useful budgeting technique to determine a ballpark figure for setting feasible objectives is the _____ method.

• A)payout planning
• B)percent of sales
• C)competitive parity
• D)401k
• E)marginal analysis

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Definitions:

Inflation Rate

An increase in the overall price levels of goods and services in an economy during a specified period.

CPI

stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Market Basket

A fixed set of goods and services whose total cost is used to track inflation and the cost of living over time through price changes.

CPI

The Consumer Price Index reflects the mean fluctuation in prices for a mix of consumer products and services, as experienced by urban buyers over time.