A Comprehensive or Overall Formal Plan for a Business That

question 80

Multiple Choice

A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise (or materials) to be purchased, the manufacturing, selling, administrative, and general expense to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a(n) :

• A) Master budget.
• B) Kaizen budget.
• C) Capital expenditures budget.
• D) Continuous budget.
• E) Operating budget.

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Definitions:

Proportion

A statistic that measures the fraction of the total number of items in a set that are of a particular category or characteristic.

Poisson Distribution

A probability distribution that describes the occurrence of rare events or the number of events in fixed intervals of time or space.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Stratified Random Sample

A sampling method that divides the population into strata, or subgroups, and selects random samples from each stratum to ensure representation.