A critical factor in budgeting for a service firm is to
A) hire professional staff to perform the budgeting work.
B) coordinate professional staff needs with anticipated services.
C) classify all personnel as either variable or fixed.
D) budget expenditures before anticipated receipts.

Question

Quizplus · Accepted Answer

Coordinating professional staff needs with anticipated services is crucial for service firms to ensure they have the right number of staff available to meet the demand for their services, which directly impacts their ability to generate revenue and manage costs effectively.

A Critical Factor in Budgeting for a Service Firm Is