A Static Budget

question 208

Multiple Choice

A static budget

• A) should not be prepared in a company.
• B) is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.
• C) shows planned results at the original budgeted activity level.
• D) is changed only if the actual level of activity is different than originally budgeted.

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Definitions:

Perceived Inequity

Perceived inequity occurs when an individual believes that the ratio of their inputs to outcomes is not equal to the input-outcome ratios of others, leading to feelings of dissatisfaction and unfair treatment.

Unfairly

In a manner that is unjust, partial, or prejudiced, not giving equal treatment or opportunity.

McClelland's Motivation Theory

A psychological theory that identifies three primary drivers of motivation: need for achievement, need for affiliation, and need for power.

Need for Achievement

The motivation to excel, to achieve in relation to a set of standards, or to compete successfully against challenging criteria.