The Main Way in Which Budgets Provide a Means of Control

question 70

Multiple Choice

The main way in which budgets provide a means of control in an organisation is by allowing:

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

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Definitions:

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Response Variables

Variables that measure the outcome of a study or experiment, showing the effect of manipulations in predictor variables.

Multicollinearity

A situation where two or more independent variables in a multiple regression model show a high degree of correlation.

Regression Coefficients

Numerical values that represent the relationship between an independent variable and the dependent variable in a regression analysis.