In a chain of discount department stores,personnel needs are estimated in three different ways: a)for a high-demand season,b)for a moderate-demand season,and c)for a low-demand season.By taking these three activity levels into account,managers are developing an)________.
A)fixed budget
B)flexible budget
C)zero-based budget
D)monetary policy
E)operating plan

Question

Quizplus · Accepted Answer

By taking into account three different activity levels, managers are developing a flexible budget that can adjust to changing conditions. A fixed budget would not accommodate changes in demand, a zero-based budget would require justification for every expense from scratch, and monetary policy is unrelated to personnel needs in a discount department store. An operating plan is a broader term that encompasses various aspects of a business, not just personnel needs.

In a Chain of Discount Department Stores,personnel Needs Are Estimated