Which of the Following Is a Concern of Using Prior

question 5

Short Answer

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.

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Definitions:

Revenue Recognition

The accounting rule that specifies the particular scenarios in which revenue is acknowledged or recorded.

Software Delivery

The process through which software is made available to and installed on the end user's computer or device.

Unearned Franchise Fees

Income received by a franchisor for which the services have not yet been provided or realized.

Notes Receivable

Represents claims for which formal written promises of payment have been received by the business.