Which Budget Is Best for Managers to Use to Plan

question 145

Multiple Choice

Which budget is best for managers to use to plan revenues and expenses at different sales volumes?

• A) Capital budget
• B) Flexible budget
• C) Static budget
• D) Master budget

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Definitions:

Compete Effectively

The capability of an organization to successfully challenge other companies within the same market, thereby gaining a competitive advantage.

Stockpiling

The practice of accumulating a large stock of goods or materials, typically to guard against shortages or price increases.

Bullwhip Effect

A phenomenon where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

EDI

Electronic Data Interchange, a computer-to-computer exchange of business documents in a standard electronic format between business partners.