The Primary Disadvantage of Zero-Based Budgeting Is

question 73

Multiple Choice

The primary disadvantage of zero-based budgeting is:

• A) Its tendency to motivate managers to create budgetary slack
• B) It encourages managers to spend all their budgeted money each year to avoid future cutbacks
• C) It ignores the input of managers
• D) The time it takes to develop a zero-based budget

Identify strategies to increase sensitivity and effectiveness in working with older adults.

Understand the purposes and costs associated with holding cash in a firm.

Recognize different methods of managing accounts receivable and their impacts on a firm’s finances.

Understand the concepts and types of demand for holding cash, including transactions, precautionary, and speculative demands.

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Definitions:

Concrete Operations

A stage in cognitive development, as described by Piaget, where children gain the ability to think logically about concrete, tangible objects and events.

Subjective Theory of Knowledge

The belief that knowledge and understanding are influenced by personal experiences, perspectives, and biases.

Evaluativist Theory

A theoretical approach that focuses on how individuals assess, judge, or evaluate phenomena in their environment.

Absolute Truth

A fact or principle that is believed to be universally valid, irrespective of context or situation.