Which of the Following Is True of a Budgeting System

question 50

Multiple Choice

Which of the following is true of a budgeting system?

• A) It compels managers to plan ahead.
• B) It increases agency costs.
• C) It is easy to measure the exact benefits of a budgeting system.
• D) It leads to operational inefficiency.

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Definitions:

Underlying Purpose

The fundamental reason or motive that is not immediately obvious, driving actions or goals.

Negative Elements

Components or aspects of a situation, document, or product that detract from its overall quality or effectiveness.

Positive Memos

Internal corporate communications that convey affirmative news, reinforcement, or encouragement to employees.

Reader Benefits

The advantages or positive outcomes that readers gain from engaging with a text.