Questions and Answers
What is the primary purpose of a budget?
To communicate management's plans for the future
Who is typically responsible for presenting management's budgeting goals in financial terms?
The accountants
What does budgeting help create within a business?
An early warning system for potential problems
Which of the following is an essential characteristic of effective budgeting?
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What does a cash budget primarily focus on?
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In what way does budgeting promote efficiency?
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Which of the following is not a benefit of budgeting according to the text?
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What is the most common budget period mentioned in the text?
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What should budgets be based on?
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Which of the following is not listed as a factor considered in sales forecasting according to the text?
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What is the main advantage of participative budgeting mentioned in the text?
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What is essential for an effective budgeting process?
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