Which of the Following Budgeting Procedures Would Be Used If

question 98

Multiple Choice

Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe?

• A)competitive parity
• B)marginal analysis
• C)percentage of sales
• D)objective and task
• E)arbitrary method

---

Definitions:

Relative Scarcity

Relative scarcity refers to the situation where a resource is limited in supply when compared to the demand for it.

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which increases as income rises within progressive tax systems.

Dual-Earner Families

Dual-earner families are those where both partners in a household engage in paid employment.

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.