'A Zero-Based Budgeting System Involves Establishing Decision Packages That Are

question 3

Multiple Choice

'A zero-based budgeting system involves establishing decision packages that are then ranked in order of their relative importance in meeting the organization's objectives'.  Which of the following is true regarding he difficulties that a not-for-profit organization may experience when trying to rank decision packages. Select ALL true statements.

• A) The activities that are being proposed in a budget are described in variable packages. There will often be more less than one decision package proposed for an activity.
• B) The activities that are being proposed in a budget are described in decision packages. There will often be more than one decision package proposed for an activity.
• C) Some of these packages will be inclusive and will require operations to select the best solution to the issue involved.
• D) Some of these packages will be mutually inclusive and will require management to select the best solution to the issue involved.
• E) Each decision package is evaluated. Its costs are compared to its benefits and net present values or other measures calculated.
• F) Management may decide to reject packages even though the activity was done last year. In this way the organization is said to be starting from a zero base with each package given due consideration.
• G) Management may decide to accept packages even though the activity was done last year. In this way the organization is said to be starting from a 100% cost base with each package given due consideration.
• H) In a public sector body, for example, decision packages will relate profit making activities.
• I) In a public sector body, for example, decision packages will relate to very disparate activities.

---

Definitions:

Virtual Machine

A software emulation of a physical computer, allowing multiple operating systems to run on a single physical machine or in the cloud.

Operating System

The essential software responsible for controlling computer hardware, managing software resources, and offering universal services for computer applications.

Incompatible App

A software application that cannot run properly on a certain system or device due to differences in hardware or software environments.

Disk Cleanup Utility

A computer maintenance tool used to free up disk space by removing unnecessary or temporary files.