Identify Each Item as an Advantage or Disadvantage of Budgeting

question 17

Multiple Choice

Identify each item as an advantage or disadvantage of budgeting.
-Leads to budgetary slack

• A)Advantage
• B)Disadvantage

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Definitions:

Sales Volume

The quantity of products or services sold by a company within a specific period, often used as an indicator of business activity.

Return On Total Assets

A financial metric that measures the efficiency of a company in generating profits from its total assets.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a finance charge on the income statement.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.