1. Obtaining the highest possiblereturn with the minimum of use of resources committed is the basic definition of:
(a) Effectiveness and efficiency.
(b) Effectiveness.
(c) Efficiency.
(d) None of the above.
2. Accomplishing a specifictask or reaching a goal is the basic definition of:
(a) Effectiveness andefficiency.
(b) Effectiveness.
(c) Efficiency.
(d) None of the above.
3. Discretionarycosts are costs:
(a) That cannot be easily reduced.
(b) That can be cut when costs need to be reduced.
(c) The same as administrative costs.
(d) All of the costs for operating the business.
4. The reason forcapital expenditures is:
(a) Growth.
(b) Increased sales.
(c) Cost reductions.
(d) All of the above.
5. The normal budget can be classifiedas:
(a) Routine.
(b) Less costly.
(c) Involving a large cash outlay.
(d) A & B are correct.