Misuse of Budgets Can Lead to Incentives to Cheat and Lie.Cheating

question 45

Multiple Choice

Misuse of budgets can lead to incentives to cheat and lie.Cheating and lying may take the form of ________.

• A) making short-run decisions to increase profits that are not in the company's best long-run interests
• B) budgetary slack
• C) decreasing profits when actual profits significantly exceed the profit target
• D) all of the above

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Definitions:

Withheld

Refers to a portion of an employee's wages not paid directly to them but retained by the employer for income tax or other purposes.

Matched By Employer

Typically refers to contributions to retirement plans or other benefits that an employer makes, matching the employee’s contribution to a certain percentage.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Product Warranty Expense

Costs that a company anticipates or incurs for repairing, replacing, or compensating for defective products during the warranty period.