Which of the Following Is a Characteristic of Zero-Based Budgeting

question 128

Multiple Choice

Which of the following is a characteristic of zero-based budgeting?

• A)It uses the same level of activity as the prior budget period.
• B)It is relatively inexpensive to implement.
• C)It is used mostly by manufacturing companies.
• D)It results in a fresh consideration of the validity of budget amounts.

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Definitions:

Demand Function

A mathematical expression that shows the relationship between the quantity of a good consumers are willing to buy and its price.

Price Elasticity

The measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

Price Doubles

A situation where the price of a good, service, or commodity increases to twice its previous level, affecting supply and demand dynamics.

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.