Which of the Following Statements Concerning Budgets Is Not True

question 11

Multiple Choice

Which of the following statements concerning budgets is not true?

• A)Budget targets can sometimes be unreasonable or too difficult to achieve.
• B)Budgets should be based on consideration of past performance and assessment of the expected trading and operating conditions.
• C)Budgets need to be continually adjusted in the light of subsequent events.
• D)Budget targets can never be too high as it is always best to make people try harder to reach a goal.

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Definitions:

Expected Marginal Benefit

The additional benefit perceived by a consumer or producer from consuming or producing one more unit of a good or service.

Expected Marginal Cost

Refers to the anticipated increase in cost for producing one additional unit of a good or service.

Macroeconomics

The study of the economic behavior of entire economies, as measured, for example, by total production and employment.

Chinese Economy

The economy of China, characterized by its large size, rapid growth, and transition from a centrally planned economy to a more market-oriented system.