Which of the Following Statements Is TRUE of the Budgeting

question 31

Multiple Choice

Which of the following statements is TRUE of the budgeting process?

• A) If a company carefully plans for its future, there will be no need to make modifications during the budget period.
• B) It is a continuous process that encourages communication.
• C) It shows the actual performance of the business.
• D) Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Evidence

Information or facts that are used to support the validity of a statement or argument.

Interpretation

An expression of the meaning or significance of a wide variety of experiences, situations, data, events, judgments, conventions, beliefs, rules, procedures, or criteria.

Inference

Identifies and secures elements needed to draw reasonable conclusions; it forms conjectures and hypotheses, it considers relevant information, and it reduces or draws out the consequences flowing from data, statements, principles, evidence, judgments, beliefs, opinions, concepts, descriptions, questions, or other forms of representation.