Which of the Following Is a Major Benefit of Utilizing

question 160

Multiple Choice

Which of the following is a major benefit of utilizing a budgeting system?

• A)It always results in more profitable decisions.
• B)It is easier for managers than traditional decision-making models.
• C)It saves costs by utilizing historical data to make projections.
• D)It facilitates coordination and communication.
• E)Once a successful budget is developed, it can be re-used year after year.

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Definitions:

Market Price

The existing cost for buying or selling an asset or service.

Common Stock

Common stock represents shares of ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Acid-Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.

Financial Data

Information related to the financial performance and position of an entity, including balance sheets, income statements, and cash flow statements.