Which of the Following Is True of Participative Budgeting

question 64

Multiple Choice

Which of the following is true of participative budgeting?

• A) It always reflects operating realities such as actual levels of activity and seasonal variances.
• B) It gives an opportunity to build slack into the budgets.
• C) It results in achieving maximum organizational efficiency.
• D) It is only in use by large firms that need to prepare cash budgets.
• E) It can only be used by small firms.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price, holding all else constant.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a range of prices.

Upward-Sloping

Characteristic of a curve on a graph that demonstrates an increase in one variable as another variable increases, often seen in supply curves.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for a given period, typically demonstrating an inverse relationship.