Regarding the Budgeting Process for the Entire Firm

question 95

Multiple Choice

Regarding the budgeting process for the entire firm:

• A)Using a short-term (3 month)budget destroys the value of a budget as a tool for managerial control.
• B)The process starts with the preparation of a financial department budget,because that is where the money comes from.
• C)The sales budget depends upon the production department budget.
• D)Small firms really do not need budgets.
• E)None of these is correct.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, making rationing necessary.

Goods and Services

Goods and services constitute the output of an economy's production activities; goods are tangible products, while services are intangible benefits or functions sold to consumers.

Resource

Assets or inputs used in the production of goods and services, including natural resources, labor, and capital.

Fundamental Resource

Basic inputs used in the production of goods and services, typically including labor, capital, land, and entrepreneurship.