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Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Key factor is also known as ___________.

  1. Limiting factor

  2. Governing factor

  3. Principal factor

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A key factor is defined as the factor in the activities of an undertaking which, at a particular point of time or over a period, will limit the volume of output. Other variant terms are limiting factor, Principal Budget Factor & scarce factor. Limiting factors are governed by both internal & external factors. It may be actual or potential. If a factor of production is in short supply, then the best-paying product becomes that which yields the highest contribution per unit of limiting factor.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Budget period depends upon ______________.

  1. The type of budget

  2. The nature of business

  3. The length of trade cycles

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Budgeting is usually done for short, mid-range, longer term time periods. A month, a quarter and a month are usually observed budget periods. However, budget period can vary with each entity. A family might do budgeting every month. In this case, budget period is of one month. Generally, a government has a budget period of 12 months. Determining the budget period is the first step in the budgeting process. Budget period can have intermediate control periods over which comparisons are made between budgeted and actual results.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Usually the production budget is stated in terms of ___________.

  1. Money

  2. Quantity

  3. Both of these

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A business may need to revise a budget continuously for the length of time it takes to complete a short-term project. If a business undertakes an expansion that requires three years to complete, it may need recurrent budget revisions during this time to meet short-term goals. Afterwards, the company may go back to a more fixed budget with long-term goals. In addition, a company that introduces a new product may need to continually revise the budget until actual figures for production costs and sales income is substantiated.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Revision of budget is _________.

  1. Unnecessary

  2. Can't determine

  3. Necessary

  4. Inadequate data
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A company requires a particular budget that details categories of revenue and expenditures relevant to the particular business enterprise. Although most companies create budgets for a one-year period, ongoing evaluations regularly give the business more leeway in making adjustments as needed. Businesses utilize a budget revision process to trim excess spending, re-allocate revenues and make allowances for unexpected or uncommon expenses.

Multiple choice social science the government budget and taxation family budget prices and cost of living economic sources

Which of these is a financial economy of scale _______________.

  1. reduction in the cost of borrowing with the increase in capital outlay for expansion.

  2. reduction in tariff rates due to expansion in production base.

  3. reduction in business risk due to diversification.

  4. reduction in cost of labour due to availability of cheap labour.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial economies of scale occur when larger firms can borrow capital at lower interest rates due to their size, stability, and lower risk profile compared to smaller firms.