Which of the Following Is Not a Factor That Directly

question 39

Multiple Choice

Which of the following is not a factor that directly affects the budget for a discretionary cost?

• A)the importance of the activity to the achievement of the organization's goals
• B)last period's budget
• C)the expected level of operations
• D)managerial negotiations in the budgeting process

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Definitions:

Opportunity Cost

The amount of other products that must be forgone or sacrificed to produce a unit of a product.

Tax Return

A form filed with a government body to report income, expenses, and other relevant financial information, used to assess tax liability.

Diminishing Marginal Returns

A principle in economics where each additional unit of input results in a smaller increase in output after a certain point, common in production processes.