Which of the Following Is NOT a Weakness of Flexible

question 10

Multiple Choice

Which of the following is NOT a weakness of flexible budgeting?

• A) Requires more time and cost to prepare and revise than an incremental budget
• B) Budgets shrink with decreases in output
• C) Does not produce a fixed budget since the actual budget can only be determined retrospectively after actual output is known
• D) May not be feasible for organizations whose output is not tied to revenue
• E) Does not encourage efficiency

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Definitions:

Aircraft Production

The manufacturing process of building aircraft, which involves complex planning, design, assembly, and testing of various types of aircraft.

Concrete Mixing

Concrete mixing involves combining water, aggregate, cement, and any desired additives to form concrete that meets specific performance requirements.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Study Time

The amount of time allocated towards learning or acquiring knowledge on a particular subject or group of subjects.