Which of the Following Is a Disadvantage for Using Budgeted

question 53

Multiple Choice

Which of the following is a disadvantage for using budgeted costs instead of actual costs for support department cost allocation?

• A) Managers know their exact costs in advance and have no incentive to minimize use of services.
• B) Budgeted costs do not reflect current usage, and so managers may overuse support services.
• C) Allocated support department costs are not under the manager's control.
• D) Support departments might be cut back because services are likely to be underused.

---

Definitions:

Death Penalty

A legal punishment involving the execution of an individual by the state as retribution for a crime.

Morality Issue

A dilemma or situation that requires a choice between actions that are judged according to a system of ethics, right, and wrong.

Sufficiently Retributive

Adequately punishing or taking vengeance for wrongdoing in a manner that is considered just.

Life Sentence

A prison sentence that keeps the convicted individual incarcerated for the rest of their life, often without the possibility of parole.