Which of the following is a disadvantage of an activity-budgetary system?
A)It supports continuous improvement.
B)It supports process management.
C)It emphasizes cost reduction assuming one unit-based driver.
D)It helps improve the efficiency of necessary activities.

Question

Quizplus · Accepted Answer

An activity-budgetary system emphasizes cost reduction assuming one unit-based driver, which means that it may not take into account the complexity and variability of different activities, resulting in inaccurate budgeting and planning. This can be a disadvantage for organizations relying on such systems. The other options listed are advantages of an activity-budgetary system.

Which of the Following Is a Disadvantage of an Activity-Budgetary