QUESTION 1

1. Which of the following does NOT explain properly about decision making in the budgeting process?

   	1.	When budget calls arrive in the hands of public managers, they begin making initial decisions about what to propose and how to go about making forecasts.
   	2.	A bias toward continuity or inertia expresses public manager perspective meaning public managers decide on changes from last years proposed budget rather than make a fundamental evaluation of how they conduct their organizational mission.
   	3.	Some situations do require fundamental evaluations of operations, where resulting from changes in operating environments or policy guidelines.
   	4.	Budget reformers, on the whole, appear to favor an incremental approach to changes, and budget practitioners favor a more rational approach.