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:

Positive Symptoms

Symptoms of mental illness that are characterized by the presence of unusual behaviors or feelings, such as hallucinations or delusions, primarily in context with schizophrenia.

Emotional Blunting

A reduction in the intensity of an individual's emotional response, often a side effect of psychiatric medication.

Hallucinations

Perceptions in the absence of external stimuli that have qualities of real perception, commonly associated with mental disorders or neurological conditions.

Bizarre Behaviors

Actions that are extremely unusual or atypical, often indicating underlying psychological or neurological disorders.