Which of the Following Is NOT a Basic Function of a Budget

question 10

Multiple Choice

Which of the following is NOT a basic function of a budget?

• A) Budgets indicate the need for future short-term financing.
• B) Budgets provide the basis for corrective action when actual figures differ from the budgeted figures.
• C) Budgets compare historical costs of the firm with its current cost performance.
• D) Budgets allow for performance evaluation.

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Definitions:

Probability Density Function

An equation that indicates the probability of a random variable occurring at a certain value.

Interval

In mathematics, this refers to a range of numbers between two defined points, which can be either open or closed at each end.

Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, describing the times between events in a continuous but rare occurrence.

Poisson Probability

The probability of a given number of events happening in a fixed interval of time or space if these events occur with a known constant mean rate and independently of the time since the last event.