Program Budgeting, Although Highly Popular and Successful, Has Many Disadvantages

question 27

Multiple Choice

Program budgeting, although highly popular and successful, has many disadvantages or drawbacks.Which of the following is an advantage or benefit of program budgeting?

• A)It may provide too much information.
• B)It may be applied perfunctorily after its initial implementation.
• C)It may not live up to its expectations.
• D)It may discourage funding at levels other than those that will result in actual increases in results.

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Definitions:

Average Costs

It's the cost associated with producing each unit, found by dividing the entire production expenses by the number of units produced.

Returns to Scale

The rate at which output increases as inputs are increased proportionally, indicating how efficiently larger production scales affect production volume.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or operation grows in scale, opposite of economies of scale.

Returns to Scale

The change in output resulting from a proportionate increase in all inputs; the concept explains how output changes with varying levels of input.