Preparing a Budget Does Not Allow Managers to

question 165

Multiple Choice

Preparing a budget does not allow managers to

• A)Eliminate any variances that would have been created without a budget.
• B)Help divisions within the organization to communicate with one another.
• C)Assess whether a division's strategic direction is in line with corporate strategy.
• D)All of these ans choices are things which preparing a budget allows managers to do.

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Definitions:

Pollution Permits

Licenses issued by governments that allow the holder to emit a certain amount of pollution; these can be traded in a market.

Interested Parties

Refers to individuals or groups that have a stake or interest in the outcome of a project, decision, or outcome.

Efficient Outcome

A situation in which resources are allocated in the most effective way possible, often achieved through market equilibrium where supply equals demand.

Government Intervention

Actions by a government to influence or directly manage an economy or specific sectors, aiming to correct market failures, stimulate economic growth, or achieve social objectives.