Department Managers Plan Lower Goals Than Possible in Order to Build

question 44

Multiple Choice

Department managers plan lower goals than possible in order to build in a cushion for unexpected events.This result in:

• A)budgetary slack.
• B)zero-based budgeting.
• C)goal conflict.
• D)flexible budgeting.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, usually set by the government.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price in a given period.

Tariffs

Taxes imposed by a government on imported goods.