In the Control Phase of Budgeting It Is Not Necessary

question 36

Multiple Choice

In the control phase of budgeting it is not necessary to:

• A) investigate all variances.
• B) decide on management action.
• C) provide timely information to management.
• D) compare actual performance with budget estimates.

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Definitions:

Asset Price

The current market value or price at which an asset, such as a stock, bond, or commodity, can be bought or sold.

Potential Loss

The amount of money that could be lost in an investment, considering possible outcomes under various scenarios, noting the risk involved.

Long

An investment strategy where an investor purchases a security with the expectation that it will increase in value over time.

Futures Contract

An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.