Formal Written Instructions That Specify Actions to Be Taken Under

question 66

Multiple Choice

Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals are known as:

• A)Rules
• B)Norms
• C)Esprit de corps
• D)Standard operating procedures
• E)SOPs

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Definitions:

Master Budget

An integrated financial plan that includes all of the individual budgets related to sales, cost of goods sold, operations, inventory, and financing.

Credit Sales

Sales made by a business that are not paid for at the time of purchase but are charged to the customer's account to be paid for at a later date.

Production Budget

A production budget estimates the number of units that must be produced during a specific period to meet sales and inventory needs.

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of a reporting period, important for calculating cost of goods sold.