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:

Interest-Rate Cost-Of-Funds

The cost incurred by a financial institution to acquire the funds that it lends out to its customers, which is often influenced by prevailing market interest rates.

Marginal Cost

The rise in cost due to the production of an extra unit of a product or service.

Marginal Benefit

Marginal benefit refers to the extra benefit received from the consumption or use of an additional unit of a good or service.

R&D Spending

R&D Spending refers to the money allocated by businesses or governments towards research and development of new products or services.