"Zero-Base Budgeting" Was a

question 44

Multiple Choice

"Zero-base budgeting" was a

• A) method of budgeting that dictated funding for federal agencies could never be cut unless the federal government was running a budget deficit.
• B) method of budgeting from the bottom up whereby each agency was required to rejustify its entire mission rather than merely its next year's increase.
• C) method of budgeting in which each federal agency would receive a zero percent increase each year.
• D) phrase used by President Bill Clinton in his attempts to persuade the public that there was very little basis for cutting the funding of most federal programs.

Identify and explain the performance measures used in evaluating managerial performance in different types of responsibility centers.

Recognize the importance of selecting appropriate cost drivers in the allocation of costs.

Understand how indirect and direct costs are allocated within departments and across products.

Learn how to compute allocation of maintenance, advertising, and other indirect costs based on different bases such as square footage and sales values.

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Definitions:

Absolute Threshold

The minimum stimulus intensity required to detect a particular stimulus 50% of the time.

Energy

The capacity to do work or produce change in physical or chemical systems, existing in various forms such as kinetic, potential, thermal, and electrical.

Sensory Sensitivity

A condition where individuals have heightened responses to sensory stimuli, such as sounds, lights, or textures.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.