The Managers of a Division Are Given a Fixed Budget

question 64

Multiple Choice

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services.Which of the following budget approaches is being implemented by the organization?

• A) Expense budget approach
• B) Profit budget approach
• C) Operating profit budget approach
• D) Cash flow budget approach
• E) Revenue budget approach

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Definitions:

Cue

A cue is a signal or stimulus that influences a person's behavior or actions, often utilized in advertising or product design to trigger consumer response.

Stimulus

Something that incites or provokes a physiological or psychological action or response.

Cue

A signal or prompt that induces a person to act or respond in a certain way, often used in behavior studies, marketing, and psychological contexts.

Response

The reaction or answer provided following a particular stimulus, inquiry, or situation.