A Static Budget

question 115

Multiple Choice

A static budget:

• A)should be compared to actual costs to assess how well costs were controlled.
• B)should be compared to a flexible budget to assess how well costs were controlled.
• C)is valid for only one level of activity.
• D)represents the best way to set spending targets for managers.

---

Definitions:

Efficacy

The ability to produce a desired or intended result, often used in the context of a treatment's effectiveness.

Experimenter Bias

A process where the scientists performing the research influence the results, in order to portray a certain outcome.

Placebo Effects

Psychological or physiological responses seen in individuals receiving an inert treatment, attributed to the belief in the treatment’s efficacy.

Placebo Effect

is a beneficial effect produced by a placebo drug or treatment, which cannot be attributed to the properties of the placebo itself, and must therefore be due to the patient's belief in the treatment.