Which of the Following Statements Is True of the Budgeting

question 98

Multiple Choice

Which of the following statements is true of the budgeting process?

• A)It includes qualitative targets of the company, not just quantitative.
• B)It is a continuous process.
• C)It shows the actual performance of the business.
• D)Its success is not dependent on human behavior.

Grasp the concept of the death spiral in internal service departments due to cost allocations.

Understand the allocation of service department costs to production departments.

Comprehend the challenges and outcomes of acquiring and charging for large central systems.

Analyze the profitability and strategic decision-making through cost allocations in specific industries.

---

Definitions:

Marginal Social Cost

The overall expense to society of producing one additional unit of a good or service, including both private costs and any externalities.

Coal Mine Pollution

Environmental contamination resulting from the extraction and processing of coal, including air and water pollution.

Catalytic Converters

Devices incorporated in the exhaust system of vehicles that reduce harmful emissions by converting pollutants into less harmful substances.

Internalization of Externalities

Refers to actions taken to incorporate the external costs or benefits of a good or service into the price paid by the consumers or producers.