Which of the Following Is an Advantage of the Budgeting

question 73

Multiple Choice

Which of the following is an advantage of the budgeting process?

• A)Assures that the lowest cost materials will be obtained
• B)Coordinates the activities of the organization
• C)Assures the company will achieve its objectives
• D)Guarantees that a profit will be achieved

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Definitions:

Percentage Return

The increase or decrease in an investment, represented as a fraction of its initial cost and expressed as a percentage.

Preferred Stock

A type of stock that provides a fixed dividend that is paid before any dividends are paid to common stockholders and typically does not have voting rights.

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.