Which of the Following Is Good Advice for Improving Budgeting

question 109

Multiple Choice

Which of the following is good advice for improving budgeting?

• A) Remember that budgets are not tools.
• B) Let budgets drive goals.
• C) Coordinate budgeting throughout the organization.
• D) Do not use budgeting planning software.
• E) Remember that profits result from budgets.

---

Definitions:

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.