An Annual (Rather Than Quarterly)budget Period Is Most Likely to Be

question 109

Multiple Choice

An annual (rather than quarterly) budget period is most likely to be used in a company that:

• A)Wants considerable flexibility in its budget.
• B)Wants very close control over its operations.
• C)Has seasonal production and marketing cycles.
• D)Wants to minimize the time and detail that goes into the budgeting process.
• E)Anticipates there will be some unforeseen developments during the year.

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.

Accelerated Pace

Refers to an increased speed or rate at which activities or developments occur.

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including employees, customers, suppliers, and investors.

Conflicting Interests

Situations where different parties have goals or intentions that are incompatible or at odds with one another.