Which of the Following Statements Is True in the Case

question 71

Multiple Choice

Which of the following statements is true in the case of budgeting for multinational companies?

• A) While budgeting for multinational companies, managers consider difference in tax statutes as an uncontrollable factor.
• B) While budgeting for multinational companies, managers do not account for foreign exchange fluctuations as the operating profits are reported in different currencies.
• C) While budgeting for multinational companies, managers must be aware that budgets will not be used for evaluating performance.
• D) While budgeting for multinational companies, managers are not concerned about the domestic factors of the different countries in which they operate.

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Definitions:

Permanent

Refers to something intended to exist or function for a long duration without significant change.

Temporary

Describing something that is not permanent or lasting, often implied to exist for a limited time.

Technical Aspects

Pertains to the specific, often complex details and elements within a field or project that require specialized knowledge or expertise.

Operational Aspects

The day-to-day functions and management of an organization or project, focusing on efficiency and effectiveness.