A Static Budget Is Not Appropriate in Evaluating a Manager's

question 110

Multiple Choice

A static budget is not appropriate in evaluating a manager's effectiveness if a company has

• A) substantial fixed costs.
• B) substantial variable costs.
• C) planned activity levels that match actual activity levels.
• D) no variable costs.

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Definitions:

Cognitive Misers

A theory suggesting that humans, in an effort to conserve mental energy, prefer to rely on simple and efficient thought processes rather than engaging in more effortful and complex reasoning.

Judgements

Judgements are opinions or decisions formed after considering facts and evidence, often involving the evaluation of information to draw conclusions.

Emotional Relating

The process of connecting with others through emotions, empathizing with their feelings, and expressing one's emotional state.

Wilhelm Wundt

A founder of modern psychology known for his establishment of the first psychological laboratory.