Which of the Following Statements Does NOT Describe a Weakness

question 102

Multiple Choice

Which of the following statements does NOT describe a weakness associated with budgeting?

• A) Some managers apply budgets too rigidly.
• B) Developing budgets can be very time consuming.
• C) Budgets link planning and controlling.
• D) Budgets may limit innovation and change.
• E) Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

Understand how changes in sales volume, prices, and costs affect net income.

Learn to calculate and interpret the degree of operating leverage.

Apply concepts of break-even and profitability analysis to decision-making, including special orders.

Understand the impact of variable and fixed costs on company profits and break-even point.

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Definitions:

Psychological Empowerment

A motivational construct characterized by an individual's sense of control over their work, understanding of their role's significance, belief in their competence, and perception of opportunities to innovate.

High Competence

Having a high level of skill, knowledge, and ability in a particular field or activity.

Self-determination

The right of people to choose their own form of government and destiny without external influence.

Psychological Empowerment

A state of feeling self-efficacious, having control over one's work, understanding the importance of one's job, and perceiving one's actions as meaningful.