Which of the Following Is Not Part of the Control

question 9

Multiple Choice

Which of the following is not part of the control phase of budgeting?

• A) Comparing actual performance with budget estimates.
• B) Deciding what action should be taken.
• C) Identifying any significant variances.
• D) Setting goals.

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Definitions:

Sales

The total revenue a company generates from selling its goods or services.

Debt-to-Equity Ratio

A financial ratio used to measure the relative proportion of shareholders' equity and debt used to finance a company's assets.

Times Interest Earned

A metric indicating a firm's capability to cover its debt payments, by contrasting its earnings before interest and taxes with its interest costs.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payments made on any borrowed capital.