Which of the Following Is a Benefit of Participative Budgeting

question 124

Multiple Choice

Which of the following is a benefit of participative budgeting?

• A) Employees tend to be more motivated to achieve the budget.
• B) A twelve-month planning horizon is maintained at all times.
• C) Budget planning is highly centralized.
• D) Communication is clearer because it flows in only one direction-upward.

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Definitions:

Positive Profits

When a company or business generates earnings that exceed its costs and expenses, resulting in a net gain.

Market Price

The prevailing rate at which a good or service is available for purchase or sale on the open market.

Profit-maximizing

The process by which a firm chooses its production level and pricing to achieve the highest possible profit given its cost structure and market demand.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and costs.