Carlos Was New to His Organization but Quickly Noticed a Pattern

question 60

Multiple Choice

Carlos was new to his organization but quickly noticed a pattern at the annual budgeting session.Mid-level managers were asking for unrealistically high budgets while top management was attempting to require budgets under last year's actual expenditures.The management's strategies are referred to as

• A)budget breakdowns.
• B)bureaucratic budgeting.
• C)budget resistance.
• D)tactical behaviors.
• E)rigid behaviors.

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Definitions:

Collection Policy

The procedures and guidelines used by a company to manage and collect accounts receivable.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Salaries Payable

An account representing the amounts owed to employees for work performed but not yet paid.

Price/Earnings Ratio

A valuation metric for a stock, calculated by dividing the market price per share by the earnings per share.