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:

Forced Out

The situation where an individual or entity is compelled to leave or exit a position or condition, often against their will.

Financial Loss

The decrease in economic benefit during a period, including money, assets, and investments, often resulting from business operations, market changes, or unforeseen events.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than other entities, leading to more efficient trading opportunities.

Deer Hunter

A person who pursues deer as wild game, typically for food, sport, or management of deer populations.