The Primary Purpose of a Budget Is

question 45

Multiple Choice

The primary purpose of a budget is:

• A) to identify which employees are doing a good job and which are doing a poor job.
• B) to show how resources will be acquired and used.
• C) to find the cheapest source of supplies and expenses.
• D) to identify who should be promoted.

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Definitions:

Compensating Differentials

Variation in wages that arises to offset the desirability or undesirability of a job or the costs and benefits of working in different locations.

Less Pleasant

A subjective assessment indicating that something is not as enjoyable or agreeable as other options or experiences.

Compensating Differentials

Wage differences across jobs that reflect the desirable or undesirable aspects of different jobs, aiming to compensate workers for job attributes like risk or undesirable hours.

Worker Turnover

The rate at which employees leave a workforce and are replaced, indicating the level of workforce stability or instability within an organization.