A company fixes the estimated amount of research expenditure for the coming year. This relates to which plan?
Answer and explanation
Correct answer: Budget
The correct answer is Budget. A budget is a plan expressed in numerical or monetary terms for a future period. The company has estimated and fixed the amount that will be spent on research during the coming year, so the statement represents planned expenditure. An objective would state what the company wants to achieve, such as completing a project; a strategy would describe a broad competitive approach; and a policy would guide recurring decisions. None of those alternatives specifically quantifies expected spending. The reference to an estimated amount of expenditure therefore makes Budget the unambiguous answer.
Frequently asked questions
What is the correct answer to this question?
Budget
Why is this the correct answer?
The correct answer is Budget. A budget is a plan expressed in numerical or monetary terms for a future period. The company has estimated and fixed the amount that will be spent on research during the coming year, so the statement represents planned expenditure. An objective would state what the company wants to achieve, such as completing a project; a strategy would describe a broad competitive approach; and a policy would guide recurring decisions. None of those alternatives specifically quantifies expected spending. The reference to an estimated amount of expenditure therefore makes Budget the unambiguous answer.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Planning. Topic: Types of plans.
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