What Is the Main Way in Which Budgets Provide a Means

question 50

Multiple Choice

What is the main way in which budgets provide a means of control in an organisation?

• A)by allowing senior management to control lower level managers.
• B)by allowing actual performance to be compared to budget targets.
• C)by allowing budget targets to be set at maximum performance.
• D)by allowing management to control the budget targets.

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Definitions:

Society of Worldwide Interbank Financial Telecommunications

An international messaging network that financial institutions use for securely transmitting information and instructions related to financial transactions.

International Payment Transfers

Financial transactions that involve the sending of money across international borders.

Global Telecommunications

Worldwide infrastructure and services for the exchange of information through electronic networks.

Commercial Letter

A formal document used in business transactions that typically contains specific information and terms regarding a deal or agreement.