The First Step in Preparing the Operating Budget Is Preparing

question 60

Multiple Choice

The first step in preparing the operating budget is preparing the

• A) sales budget.
• B) operating expense budget.
• C) purchases budget.
• D) budgeted income statement.

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Definitions:

Vroom's Normative Model

A psychological theory that describes the ways leaders can decide to engage their team in decision-making processes, based on the situation's complexity and the importance of team agreement.

Shared Information Bias

A tendency in group discussions to focus on information that all members already know, neglecting unique and potentially important information.

Group Polarization

The tendency of group discussion to intensify the preexisting views of members, leading to more extreme positions.

Normative Influence

The impact of societal norms on an individual’s behavior, often leading to conformity in order to be accepted or liked by a group.