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.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold.

Annual Net Cash Flows

The total amount of money that flows into and out of a business over a year, after all revenues are collected and expenses are paid.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, indicating the tax impact on your next dollar earned.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.