The Focal Point in Budgeting for a Service Organization Is

question 90

Multiple Choice

The focal point in budgeting for a service organization is likely to be:

• A) Capital assets acquisition.
• B) Raw material utilization.
• C) Human resource (i.e., personnel) planning.
• D) Cost minimization.
• E) The process of mission development and goal specification.

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Definitions:

Investment Projects

Initiatives or plans undertaken by an organization or individual involving the allocation of resources with the expectation of generating future returns.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal or sale.

Pretax Return

Pretax Return refers to the earnings of a company before the deduction of taxes, often used to analyze profitability from core operations.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.