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.

---

Definitions:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, emotions, and culture.

Expectancy Effect

The phenomenon where a researcher's expectations influence the outcome of a study.

Müller-Lyer Effect

A visual illusion in which two lines of the same length appear to be of different lengths due to the orientation of arrow-like figures at their ends.

Visual Cues

Visual signals or signs that can be perceived with the eyes, often used to communicate information or guide behavior.