A Disadvantage of Static Budgets Is That They

question 174

Multiple Choice

A disadvantage of static budgets is that they:

• A) are dependent on previous year's actual results
• 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

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Definitions:

Important Decisions

Critical choices or judgments that have significant consequences for an individual or organization.

Empowering Leadership

A leadership style focused on providing employees with the authority, resources, and confidence to take initiative and make decisions.

Psychological Empowerment

A state in which individuals feel a sense of control over their work and perceive their tasks as meaningful, leading to increased motivation and satisfaction.

Work Roles

The functions or responsibilities assigned to individuals in a professional setting.