Which of the Following Is an Example of the Coordination

question 20

Multiple Choice

Which of the following is an example of the coordination and communication function of the budgeting process?

• A) A budget demands integrated input from different business units and functions.
• B) Employees are motivated to achieve the goals set by the budget.
• C) Each department acts independently because the department manager will be evaluated on actual departmental results.
• D) A budget adjustment in one department will have no effect on other departments.

---

Definitions:

Adjusting Entries

Journal entries made in accounting at the end of a reporting period to allocate income and expenditures to the period in which they actually occurred.

Periodic Inventory

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are updated in the ledger at the end of an accounting period, rather than tracking each sale or purchase individually.

Perpetual Inventory

A method used in inventory accounting that immediately notes the sale or acquisition of inventory through computerized point-of-sale systems and enterprise asset management software.

Inventory Accounting Systems

Methods used by companies to keep track of their inventory levels, costs, and value, including systems like FIFO, LIFO, and weighted average.