What Does Flexing the Budget Mean

question 83

Multiple Choice

What does flexing the budget mean?

• A)Revising the budget sales figure to match actual sales
• B)Ignoring previously set targets
• C)Revising the budget to reflect changes in management behaviour
• D)Revising the original budget estimates to produce a budget based on the actual volume of activity

Comprehend the calculation of the cash cycle and its importance in corporate finance.

Learn how to calculate the accounts receivable period.

Understand how inventory management and turnover rates impact the operating cycle.

Determine the impact of changes in inventory, receivables, and payables periods on the operating and cash cycles.

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Definitions:

Business Savings

Business Savings refers to the portion of a business's profits that are set aside for future investment, as opposed to being distributed to shareholders or used for current expenses.

Government Savings

Funds accumulated by a government when it receives more money from taxes and other revenues than it spends.

Neuroticism Scale

A psychological measurement tool used to assess an individual's tendency towards emotional instability and anxiety.

Five-Factor Model

A theory in psychology, proposing that five broad dimensions underlie all human personality: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.