A Disadvantage of Static Budgets Is That They

question 164

Multiple Choice

A disadvantage of static budgets is that they:

• A)start with a clean slate.
• B)cannot be used by service companies.
• C)do not show possible changes in underlying activity levels.
• D)show the expected results of a responsibility center for several levels of activity.

---

Definitions:

Decision Significance

The importance or impact of a decision in terms of outcomes or consequences.

Social Significance

The impact or importance of an action, phenomenon, or aspect of society in influencing cultural, societal, or community values and norms.

Sales Managers

Sales personnel who have oversight of selling efforts at varying levels of the organizational hierarchy.

CPM

Short for Cost Per Thousand, a marketing term that refers to the price of 1,000 advertisement impressions on one webpage.