The Major Difference Between a Flexible and Zero-Base Budget Is

question 8

Multiple Choice

The major difference between a flexible and zero-base budget is that the metric used by flexible budgeting is

• A) Total cost while zero-base budgeting focuses on average cost
• B) Average cost while zero-base budgeting focuses on total cost
• C) Average cost while zero-base budgeting focuses on marginal cost
• D) Marginal cost while zero-base budgeting focuses on average cost
• E) Total cost while zero-base budgeting focuses on marginal cost

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Definitions:

Price Discriminate

A strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, location, or purchase volume.

Economic Profit

The financial measurement between a company's aggregate earnings and its total costs, covering both explicit and hidden charges.

Output Level

The quantity of goods or services produced by a firm or economy in a certain period.

Nondiscriminating

A principle or practice that ensures equal treatment and opportunities for all, without biases or prejudices based on irrelevant characteristics.