Annual budgeting of production goals of a division within a firm
A)is an accounting mechanism to plan for the costs and revenues over a time period
B)increase the burden on the division when goals rise
C)can lead to accumulated inventory when the goals of an upstream division are arbitrarily set too high
D)all of the above

Question

​Annual budgeting of production goals of a division within a firm
A)is an accounting mechanism to plan for the costs and revenues over a time period
B)increase the burden on the division when goals rise
C)can lead to accumulated inventory when the goals of an upstream division are arbitrarily set too high
D)​all of the above

Quizplus · Accepted Answer

Annual budgeting of production goals of a division within a firm serves as an accounting mechanism to plan for the costs and revenues over a time period. However, it can increase the burden on the division when goals rise and can lead to accumulated inventory when the goals of an upstream division are arbitrarily set too high. Therefore, all of the choices are correct.

​Annual Budgeting of Production Goals of a Division Within a Firm

Annual Budgeting of Production Goals of a Division Within a Firm