The Most Important Part of Budgeting Is

question 24

Multiple Choice

The most important part of budgeting is:

• A) The budget itself
• B) Review of actual results against the budget
• C) Knowing how much each manager has available to spend in their department
• D) Communication between managers and finance in setting the budget

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Definitions:

Yield

The income generated from an investment, usually expressed as a percentage of the investment's cost or current market value.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Available Seat

A term often used in the transportation industry, referring to a seat that is unoccupied and can be reserved or purchased by a customer.

Load Factor

A measurement used in transportation to assess the efficiency of a carrier by comparing the amount of utilized space or weight capacity versus the total available.