The Practical Importance of Budgets Is That

question 37

Multiple Choice

The practical importance of budgets is that

• A)senior executives and divisional managers are held accountable against the figures in these budgets.
• B)the CEO is accountable to shareholders and analysts against these detailed predictions.
• C)the individual figures don't matter, it is the process by which the numbers were reached that matters.
• D)a and b.

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Definitions:

Federal Government

The national government of a federal country that is responsible for national affairs, the implementation of federal laws, and the administration of common interests and national decisions.

Marginal

Referring to the effect of a change in one unit on an overall condition, often used in the context of marginal cost, revenue, and utility in economics.

Payroll Tax

Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.

Personal Income Tax

A levy imposed by governments on the income of individuals, where the tax rates typically vary based on income levels.