Which of the Following Is a Limitation of Using Past

question 25

Multiple Choice

Which of the following is a limitation of using past performance as a basis for judging actual results?

• A) It does not account for productivity increases over the periods.
• B) It increases the incentive for managers to introduce budgetary slack.
• C) It assumes inefficiencies of previous periods without considering possible efficiencies of the budget period.
• D) It increases the tendency of senior managers exaggerating changes in future conditions as opposed to changes in current conditions.

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Definitions:

Pressure To Conform

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to align with group norms.

Sex Differences

The biological and physiological distinctions between males and females.

Parenting Influence

The impact that parents have on the development, behavior, and personality of their children through their parenting styles, values, and interactions.

Childhood Development

The physical, cognitive, social, and emotional growth that occurs from birth to adolescence.