The Main Way in Which Budgets Provide a Means of Control

question 44

Multiple Choice

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

• A)setting budget targets which are attainable.
• B)senior managers controlling lower level managers.
• C)comparing actual performance with budgeted performance.
• D)setting budget targets which will be difficult to attain.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Exercise Equipment

Tools and machines designed for physical activities that improve fitness, such as treadmills, weights, and stationary bikes, used in both home and commercial gyms.

Loan

Borrowed money that is expected to be paid back in the future under predetermined terms.

Case Title

The official name or designation of a case as it appears in legal documents or court proceedings.