Budgets That Are Periodically Revised and Have New Periods Added

question 15

Multiple Choice

Budgets that are periodically revised and have new periods added to replace those that have lapsed are called:

• A)Production budgets.
• B)Sales budgets.
• C)Cash budgets.
• D)Rolling budgets.
• E)Capital expenditures budgets.

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Definitions:

Guaranteed Contracts

Agreements that assure certainbenefits or compensations, often seen in professional sports and executive employment contracts, regardless of performance or circumstances.

Average Fixed Cost

The fixed expenses of a firm (costs that do not change with output level) divided by the quantity of output produced.

Shutdown Decision

A short-run economic decision made by firms about whether to continue operations or shut down temporarily based on costs and revenue.

Marginal Cost Curve

A graphical representation showing the change in the total cost of producing one additional unit of a product or service.