The Operating Budget

question 20

Multiple Choice

The operating budget

• A)compares estimated cash flows from operations with planned expenditures.
• B)shows cash inflows and outflows for each capital project.
• C)depicts planned revenues and expenditures for each organizational unit.
• D)is used to plan for the purchase and retirement of property,plant,and equipment.

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Definitions:

Special-interest Legislation

Special-interest legislation refers to laws or regulations enacted to benefit specific groups or interests, often at the expense of the broader public interest.

Concentrated Costs

Expenses that are not spread out but are borne largely by a small group.

Widespread Costs

involve expenses that affect a large segment of the economy, often implying that these costs are distributed across many individuals or entities.

Private-sector Provision

Services or goods provided by businesses owned by individuals or shareholders, rather than by the government.