Which of the Following Is a Benefit Associated with Budgeting

question 38

Multiple Choice

Which of the following is a benefit associated with budgeting?

• A) Promotes planning and coordination.
• B) The ability to take corrective action to improve performance.
• C) Enhances performance measurement.
• D) All of the answers are correct.

---

Definitions:

Break-even Point

The point at which total costs and total revenue are equal, meaning no profit or loss is made, illustrating the minimum sales volume needed to cover fixed and variable costs.

Sales Mix

Sales mix refers to the proportion of different products or services sold by a company, influencing decisions on pricing, marketing, and production.

Variable Expenses

Costs that vary in direct proportion to changes in an organization's activity level or volume of output.

Fixed Expenses

Costs that remain constant for a given period of time, regardless of changes in production level, sales volume, or other business activities.