Match the Definitions 1 Through 9 with the Correct Term

question 85

Multiple Choice

Match the definitions 1 through 9 with the correct term or phrase (a) through (i) .

-A plan that shows the units and dollars of merchandise to be purchased during the budget period.

• A)Master budget
• B)General and administrative expense budget
• C)Budget
• D)Safety stock
• E)Budgeted income statement
• F)Budgeted balance sheet
• G)Sales budget
• H)Cash budget
• I)Merchandise purchases budget

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Definitions:

Short-sightedness Effect

The tendency of decision makers to prioritize immediate benefits at the expense of long-term gains.

Externalities

Costs or benefits that affect a party who did not choose to incur those costs or benefits, often leading to market failure if unaddressed by policy.

Rent-seeking Activities

Efforts to increase one’s share of existing wealth without creating new wealth, often through manipulation of the economic environment.

Economic Efficiency

Economic Efficiency occurs when a system allocates resources in a way that maximizes the production of goods and services at the lowest cost.