Which Statement About the Uses of Budgets Is Not True

question 23

Multiple Choice

Which statement about the uses of budgets is not true?

• A)They can assist in identifying short-term problems.
• B)They can provide a system of authorisation for managers to spend up to a particular limit.
• C)They are mainly used to set prices.
• D)None of the above, i.e., all are true statements.

Understand how to calculate direct materials cost.

Calculate adjusted cost of goods sold.

Prepare T-accounts for various cost elements and transactions.

Understand the treatment and effect of underapplied or overapplied overhead on cost of goods sold.

---

Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price taker behavior.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that sellers are willing to supply.

Upward Sloping

A term often used in economics to describe a curve or line that increases in height as it moves from left to right, indicative of a positive relationship between two variables.

Compact Disc

A physical medium for the storage and playback of digital audio and data, utilizing laser technology for reading and writing information.