What Is the Main Way in Which Budgets Provide a Means

question 25

Multiple Choice

What is the main way in which budgets provide a means of control in an organisation?

• A)By allowing senior management to control lower level managers
• B)By allowing actual performance to be compared to budget targets
• C)By allowing budget targets to be set at maximum performance
• D)By allowing management to control the budget targets

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Definitions:

Operations

Operations refer to the day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders; it encompasses everything from manufacturing goods to providing services.

Division of Income

The allocation of profit among different heads or sections for financial analysis or taxation purposes.

Capital Contributions

The funds or assets contributed to a company by its owners or shareholders to increase equity.

Beginning Capital Balance

The total funds noted in a corporation's books at the beginning of a fiscal period.