Which of the Following Is NOT a Weakness of Zero-Base

question 16

Multiple Choice

Which of the following is NOT a weakness of zero-base budgeting?

• A) Requires extensive paperwork and time to prepare
• B) Ineffective when managers have limited ability to reduce or eliminate programs
• C) Does not produce a fixed budget since the actual budget can only be determined retrospectively after actual output is known
• D) Encourages gaming by inflating the cost to provide minimum level and reducing the marginal cost of expansions

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Definitions:

Stock

Equity investments representing ownership in a corporation, giving holders a claim on part of the company's assets and earnings.

Percent

A part per hundred, used to express ratios, proportions, or comparison between quantities.

Faster

Often used to describe a process or method that reduces the amount of time needed to achieve a particular result.

Percent Less

A term used to describe a reduction or discount from a stated price, often expressed as a percentage.