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.

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Definitions:

Potassium

A chemical element with symbol K and atomic number 19, it's a vital nutrient that regulates fluid balance and nerve signals.

Oxidation Number

The oxidation number is a value assigned to an element in a chemical compound that represents the number of electrons lost or gained by an atom of that element in the compound.

Oxygen

A chemical element with the symbol O, essential for most forms of life and known for its role in combustion and respiration.

MgO

Magnesium oxide, a white hygroscopic solid mineral that is used as a refractory material, in medication, and as a magnesium source in animal feeds.