In This Method of Budgeting, the Spending Level Might Be

question 271

Multiple Choice

In this method of budgeting, the spending level might be based on the number of new customers desired and the percentage of current customers that the firm must retain to leverage investments in already established relationships.

• A) Basing the budget on the job to be done.
• B) Basing the budget on any uncommitted revenue.
• C) Setting the budget as a certain number of cents or dollars per sales unit.
• D) Matching expenditures with competitors.
• E) Setting the budget based as a certain number of dollars per person.

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Definitions:

Governor Cutout

A mechanism or setting in engines and machinery that limits the maximum speed or output to prevent damage or conserve energy.

Psi

Pounds per square inch, a unit of pressure used to quantify internal pressure, stress, or tensile strength.

Decelerometer

Measures the change in angle of a chassis when it is subjected to aggressive braking. This angle is also known as load transfer, dynamic pitch.

Inclinometer

Used to make angular measurements on driveline components and drivelines; may use a liquid level, laser, or electronic operating principle.