Final answer:
The need to reduce a budget due to cost overruns is a common business approach, but cannot be deemed true or false without context. Businesses often cut costs to maintain financial health, especially after overruns, as part of complex budget management practices. option b is answer
Step-by-step explanation:
The statement regarding the need to reduce a budget due to significant cost overruns during production could be considered a general business principle, but without additional context, it is not possible to categorically label it as true or false. It is a common strategy for businesses to re-evaluate and reduce their budget in response to unexpected cost overruns to maintain financial stability.
The decision to cut costs would typically involve evaluating which areas of spending can be reduced without compromising critical business operations. Additionally, historical data, such as the observation that the federal government ran budget surpluses from 1998-2001 despite larger budget deficits in subsequent years, shows that budget management is complex and responsive to various fiscal conditions. option b is answer