The Goals and Objectives of Establishing Budgeting in an Organization

question 29

Multiple Choice

The goals and objectives of establishing budgeting in an organization include all of the following except:

• A) the ability to decide whether goals can be achieved.
• B) the resources needed to carry out its tasks.
• C) anticipated revenues to be generated.
• D) the consistent application of generally accepted accounting principles.

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Definitions:

Operating Income

The profit realized from a business's core operational activities, excluding deductions of interest and taxes.

Telescope Manufacturing

The industry involved in designing, producing, and distributing optical telescopes, equipment used to observe distant objects by collecting electromagnetic radiation.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends.

Net Sales

The total revenue from sales of goods or services, minus returns, allowances, and discounts.