Which of the Following Statements Is True

question 66

Multiple Choice

Which of the following statements is true?

• A)The relationship between objectives, long-term plans and budgets is unclear.
• B)A long-term plan only consists of financial objectives.
• C)Budgets detail actions that need to occur over the short term.
• D)Once a budget is finalised, a business determines its primary objective.

---

Definitions:

Support Department Costs

Support Department Costs are expenses incurred by service departments within a company, such as human resources or maintenance, that do not directly contribute to revenue but provide essential support to profit-making operations.

Indirectly Related

Pertaining to elements or factors that have an influence on a situation or outcome but are not a direct cause or effect.

Overhead Rate

The overhead rate is a calculation used to determine how much of indirect costs (overhead) a business should allocate to each unit of production or service.

Multiple Production

This term could refer to the operation of producing goods in multiple quantities or varieties, but it's not a standard accounting or business term. Likely, it means batch or mass production processes.