A Disadvantage of Static Budgets Is That They

question 174

Multiple Choice

A disadvantage of static budgets is that they:

• A) are dependent on previous year's actual results
• B) cannot be used by service companies
• C) do not show possible changes in underlying activity levels
• D) show the expected results of a responsibility center for several levels of activity

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Definitions:

Motion Picture Patents Company

An early 20th-century trust made up of the major American film companies that aimed to control the film industry through patents and legal actions.

Multi-Reel Films

Refers to movies composed of more than one reel, allowing for longer and more complex storytelling in cinema.

Monopolistic Trust

A large business entity made up of a combination of companies, which holds exclusive control over a particular market or sector, limiting competition.

Price Fixing

An illegal agreement among competitors to fix, raise, or stabilize prices or competitive terms, often resulting in reduced competition and harm to consumers.