Which of the following is a limitation of using past performance as a basis for judging actual results?
A) It does not account for productivity increases over the periods.
B) It increases the incentive for managers to introduce budgetary slack.
C) It does consider inefficiencies of previous periods.
D) It increases the tendency of senior managers exaggerating changes in future conditions as opposed to changes in current conditions.
Correct Answer:
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Q22: Budgets should _.
A) be flexible
B) be administered
Q23: Which of the following is true of
Q24: Challenging budgets tend to _.
A) discourage out-of-the-box
Q25: Demanding but achievable targets tend to _.
A)
Q27: Which of the following is a benefit
Q29: After a budget is agreed upon and
Q31: Managers who feel that top management does
Q34: Participation of employees in the budgeting process
Q35: Describe the benefits of preparing an operating
Q36: A limitation of using past performance as
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