When a Manager Is Evaluated on the Difference Between Sales

question 98

Multiple Choice

When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services,this is an example of a(n) _____________ budget approach.

• A) revenue
• B) cash flow
• C) expense
• D) profit
• E) capital

---

Definitions:

Default-Risk

The risk that a borrower fails to make the required payments on a debt obligation, leading to potential losses for the lender or investor.

Higher Rates

Typically refers to an increase in interest rates, which can affect borrowing costs, investment returns, and economic activity.

Standard & Poor's

A financial market intelligence company known for its stock market indices such as the S&P 500, as well as its ratings of the creditworthiness of borrowers.

Weighted Index

A stock market index in which each constituent stock affects the index in proportion to its market value.