The Budget's Main Objective Is to Minimize Costs

question 22

True/False

The budget's main objective is to minimize costs.

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Definitions:

Static Budget

A budget that is created based on a fixed set of assumptions and does not change in response to variations in business activity levels.

Patient-Visits

A metric in healthcare representing the number of patients who see a healthcare provider within a specific timeframe.

Total Cost

The sum of all costs incurred in the production of goods or services, including direct, indirect, fixed, and variable costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing better budgeting accuracy.