Question: The principal budget factor is the A. Component which reduces the activities of the organisation and is often the starting point in budget preparation. B.

The principal budget factor is the A. Component which reduces the activities of the organisation and is often the starting point in budget preparation. B. Budgeted revenue expected in a forthcoming period. C. Main budget into which all subsidiary budgets are consolidated. D. Overestimation of revenue budgets and underestimation of cost budgets, which operates as a safety factor against risk

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