Budgets Need to Be Fair and Attainable for Employees to Consider

question 182

Multiple Choice

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem?

• A) Setting goals among managers that conflict with one another.
• B) Setting goals too tightly making it difficult to meet performance expectation.
• C) Allowing employees the opportunity to be a part of the budget process.
• D) Allowing goals to be so low that employees develop a "spend it or lose it" attitude.

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Definitions:

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.

Total Product

The total quantity of output produced by a firm or an economy within a certain period, often considered in relation to inputs used.

Marginal Product

The additional output derived from employing one more unit of a particular input, while other inputs are held constant.