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:

Rental Income

This is income received from renting out property or equipment. It is often considered passive income and must be reported for tax purposes.

Revenue

The total income generated from normal business operations and before any expenses are deducted.

Asset

Anything of value owned or controlled by a business, entity, or individual that can be used to generate income or settle liabilities.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated for financial reporting and tax purposes.