When Congress Is Unable to Pass a Complete Budget by the Beginning

question 6

Multiple Choice

When Congress is unable to pass a complete budget by the beginning of the fiscal year, it usually passes _____, which enable the executive agencies to keep on doing whatever they were doing the previous year with the same amount of funding.

• A) continuing resolutions
• B) referendums
• C) t ax increase bills
• D) nuclear option resolutions
• E) outlays and obligations bills

---

Definitions:

Fixed Expenses

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Margin of Safety Percentage

A financial ratio indicating the difference between actual sales and break-even sales, used to determine the risk of incurring a loss.

Break-even Sales

The level of sales at which a business neither makes a profit nor a loss, calculated by dividing fixed costs by the contribution margin ratio.