Which of the Following Is Not an Advantage of Using

question 14

Multiple Choice

Which of the following is not an advantage of using a "highly achievable target" when constructing budgets?

• A) Increasing managers' commitment to achieving budget targets.
• B) Increasing the risk that managers will engage in "earnings management" behavior.
• C) Improving predictability of earnings or operating results.
• D) Decreasing the cost of achieving organizational control.
• E) Enhancing the usefulness of a budget as a planning and coordinating tool.

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Definitions:

Population Parameters

Numerical characteristics that describe various aspects of a population, such as its mean or variance.

Expected Frequencies

The anticipated count of occurrences in each category of a statistical distribution under a null hypothesis.

Chi-square Statistic

A measure used in statistics to assess how expectations compare to actual observed data, especially in the context of categorical variables.

Expected Frequencies

The predicted counts in each category of a variable, calculated based on a hypothesis or model.