Establishing Budgeted Amounts

question 66

Essay

Establishing budgeted amounts
(a)The text discusses two basic philosophies as to the levels at which budgeted amounts should be set.Identify and describe briefly each of these two philosophies.
(b)Which of the two management philosophies would be more likely to elicit the following comment?
"At our company,budgeted revenue is set so high and budgeted costs so low that no department can ever meet the budget.This way,department managers can never relax;they are motivated to keep working harder no matter how well they are already doing."

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Definitions:

Oral Cavity

The mouth, or the beginning of the digestive tract, which comprises structures such as the lips, teeth, and tongue.

Nasopharynx

The upper part of the pharynx, connecting the nasal cavity above the soft palate.

Innate Immunity

Immune system response that is the same with each exposure to an antigen; there is no ability for the system to remember a previous exposure to the antigen.

Immune Response

The body's defense mechanism against foreign substances or pathogens through the activation of immune cells.