Rural Development Corporation (RDC) and Sid Enter into a Contract

question 18

Multiple Choice

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is

• A)a delegatee.
• B)an assignee.
• C)an obligee.
• D)a third party beneficiary.

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Definitions:

Continuous Budgeting

A method of budgeting that continuously updates the financial budgets by adding a new period (month, quarter, etc.) as the current period is completed, allowing for near continuous financial planning.

Master Budget

A comprehensive financial plan for an organization's upcoming year, summarizing all of its plans and financial activities.

Budget

A financial plan that estimates income and expenditures for a future period, often used as a guide for financial decision-making and resource allocation.

Budgetary Control Process

A method for managers to set financial and operational goals with budgets, monitor performance, and take corrective actions to stay on track with objectives.