Which of the Following Statements Is True

question 118

Multiple Choice

Which of the following statements is true?

• A) A favourable variance always benefits a company.
• B) Managers attempt to maintain unfavourable variances.
• C) Favourable variances are typically not preferred by management.
• D) Only a flexible budget can be used to determine a variance.
• E) A favourable variance is not always beneficial for an organization.

Distinguish between the sustainable and internal growth rates under various financial conditions.

Analyze the implications of financial planning assumptions on a firm’s operational adjustments.

Understand the importance and limitations of financial planning models.

Define and distinguish between internal growth rate and sustainable growth rate.

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Definitions:

Self-Modification Program

A structured process or set of practices designed for individuals to alter their behavior or improve specific aspects of their lives through self-directed change.

Study Habits

The consistent practices and routines that individuals use to acquire and retain information efficiently.

Operant-Conditioning Phenomena

A learning process where behavior is controlled by consequences like rewards or punishments.

Positive Reinforcement

A technique in behavior modification that involves rewarding a desired behavior to reinforce its occurrence.