Which of the Following Statements Is True of the Budgeting

question 77

Multiple Choice

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

• A) If a company carefully plans for its future, there will be no need to make modifications during the budget period.
• B) It is a continuous process that encourages communication.
• C) It shows the actual performance of the business.
• D) Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.

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Definitions:

Potential Cause

An element or factor that might bring about a certain effect or outcome, not yet proven as the definitive cause.

Covariation Principle

A concept in social psychology indicating that behavior is attributed to potential causes that co-occur consistently with the observed effect.

Covariation Principle

A principle used to explain how people attribute cause; they note the pattern between the presence or absence of possible causal factors and whether the behavior occurs.

Inference

The process of drawing conclusions from available evidence or premises, often used in reasoning and problem-solving.