A Possible Budget Reform Involves _____

question 121

Multiple Choice

A possible budget reform involves _____

• A) adopting a quadrennial budget.
• B) breaking down the budget into increasingly small budget lines.
• C) appointing agency heads with different priorities than those of elected representatives.
• D) simplifying the budget document by concentrating only on major groupings and eliminating line items.
• E) eliminating the operating budget.

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Definitions:

Average Variable Cost

The cost per unit of variable inputs (like labor or materials) for producing a good, which changes with the level of output.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, or insurance.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger production volumes.

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost of producing one additional unit.