Which of the Following Is an Advantage of Budgeting

question 57

Multiple Choice

Which of the following is an advantage of budgeting?

• A)Budgets help managers by eliminating risk,as they show actual values of expected activities.
• B)Budgets form a part of the financial statements of a company.
• C)Budgets help managers by identifying potential constraints.
• D)Budgets contain only dollar values and this helps in analyzing actual performance.

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Definitions:

Capitalist Economy

An economic system where private individuals or businesses own capital goods, and the production of goods and services is based on supply and demand.

Employment Discrimination

Occurs when a job applicant or employee is treated unfavorably because of characteristics, such as race, gender, age, or disability, that are unrelated to their job performance.

Earnings

The amount of profit that a company produces during a specific period, which is a key indicator of its financial health.

Short-Run Cost Curves

Graphical representations showing how a firm's costs change in relation to output level in the short term, where some inputs are fixed.