The Purpose of Introducing Cost-Benefit Analysis into the Federal Bureaucracy

question 243

Multiple Choice

The purpose of introducing cost-benefit analysis into the federal bureaucracy was to

• A) reduce the number of rules created by federal agencies.
• B) place restrictions on federal agencies' budgets.
• C) decide which federal agencies were really necessary.
• D) measure how effective federal agencies were.
• E) All of the above are correct.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating the contribution of sales to fixed costs and profit.