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:

Reprimanded

Being formally reproofed or criticized for wrongdoing or a mistake.

Sex Play

Exploration of sexual feelings and interactions, often seen as a normal part of developmental behavior in children.

Unintended Pregnancy

A pregnancy that is either mistimed or unwanted.

Therapist

A professional trained to provide counseling and support to individuals dealing with emotional, psychological, or behavioral issues.