Which of the following is a concern of using prior performance as the starting point for developing budgets?
A)This approach can foster a business-as-usual mentality.
B)This approach may blind decision makers to the need for drastic changes in business by making them focus narrowly on small changes from the status quo.
C)This approach can lead to ratcheting up performance expectations, but are less likely to ratchet down.
D)Both A and B are concerns.
E)A, B and C are concerns.

Question

Quizplus · Accepted Answer

Using prior performance as the starting point for developing budgets can create concerns such as fostering a business-as-usual mentality (A), blinding decision makers to the need for drastic changes (B), and ratcheting up performance expectations that may be difficult to ratchet down (C). Therefore, the best answer is E, which includes all of these concerns.

Which of the Following Is a Concern of Using Prior