A Formal Budget Program Will Almost Always Result In

question 71

Multiple Choice

A formal budget program will almost always result in:

• A) higher sales.
• B) more cash inflows than cash outflows.
• C) decreased expenses.
• D) improved profits.
• E) a detailed plan against which actual results can be compared.

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Definitions:

Consumption

The use of goods and services by households, constituting a major part of the economy's total output.

Permanent Income Hypothesis

A theory proposed by Milton Friedman suggesting that an individual's consumer behavior is determined by their long-term income expectations rather than their current income.

Services

Intangible products offered to consumers and other businesses, such as banking, education, and healthcare, which unlike goods, are not physical objects.

Autonomous Consumption

The level of consumption expenditure that occurs when income is zero, reflecting the basic level of consumption necessary for survival.