Budgeting Provides All of the Following Except

question 109

Multiple Choice

Budgeting provides all of the following except:

• A) A means to communicate the organization's short-term goals to its employees.
• B) Support for management functions of planning and coordinating activities of the organization.
• C) A means to anticipate problems.
• D) An ethical framework for decision-making.
• E) A basis for motivating employee behavior.

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Definitions:

Indirect Cost

Expenses not directly attributable to a specific product or activity, often including overhead costs like utilities.

Contribution Format

A type of income statement where costs are divided into variable and fixed categories, emphasizing the contribution margin.

Traditional Format

In accounting, a conventional way of presenting financial statements that may include the income statement in a single-step or multi-step format, depending on the level of detail.

Cost Of Goods Sold

This is the direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.