The Budgeting Process Does Not Involve Which of the Following

question 77

Multiple Choice

The budgeting process does not involve which of the following activities:

• A) Specific goals are established
• B) Periodic comparison of actual results to goals
• C) Execution of plans to achieve goals
• D) Increase in sales by increasing marketing efforts.

---

Definitions:

Specific Division

A distinct business unit within a larger organization, often focused on a particular product line or market segment.

Risk Averse Manager

A manager who prioritizes minimizing risks in decision-making and strategy, favoring safer investments with potentially lower returns.

Discount Rate

The interest rate used to discount future cash flows of a financial asset to their present value, often used in NPV calculations.

Revenue

The sum of money earned from the sale of products or services that are the main activities of a business.