The Following Events Took Place When Managers A, B, and C

question 81

Multiple Choice

The following events took place when Managers A, B, and C were preparing budgets for the upcoming period:
I. Manager A increased property tax expenditures by 2% when she was informed of a recent rate hike by local authorities.
II. Manager B reduced sales revenues by 4% when informed of recent aggressive actions by a new competitor.
III. Manager C, who supervises employees with widely varying skill levels, used the highest wage rate in the department when preparing the labor budget.
Assuming that the percentage amounts given are reasonable, which of the preceding cases is (are) an example of building slack in budgets?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Behaviour Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning, without delving deeply into past underlying conflicts.

Systematic Desensitization

A therapeutic technique used to reduce fear or anxiety by gradually exposing the patient to the feared object or context.

Classical Conditioning

The procedure of acquiring skills by associating a stimulus occurring in one's environment with a naturally arising stimulus, prompting a learned reaction.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the occurrence of desired behaviors.