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:

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, not sequentially, following an emotional stimulus.

James-Lange Theory

A theory suggesting that physiological arousal precedes the experience of emotions; individuals interpret specific physiological responses as different emotions.

Guilty Knowledge Test

A psychological assessment tool that detects if a person has knowledge only someone involved in a crime would have, based on physiological responses.

Parasympathetic Arousal Theory

A theory suggesting that the parasympathetic nervous system plays a crucial role in arousal, promoting relaxation and recuperation.