A limitation of comparing a company's performance against actual results of last year is that:
A)it includes adjustments for future conditions.
B)past results can contain inefficiencies of the past year.
C)feedback is no longer a possibility.
D)the budgeting time period is set at one year.

Question

Quizplus · Accepted Answer

Comparing a company's performance against actual results of last year may not be an accurate reflection of the company's current performance as past results can contain inefficiencies of the past year. It is important to consider changes in the market, competition, and internal factors that could affect the company's performance. Therefore, relying solely on past results may not provide a complete picture of the company's performance.

A Limitation of Comparing a Company's Performance Against Actual Results