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:

Individual Achievement

Personal success or accomplishment attained through one's own skills, effort, or qualities, often in educational or professional contexts.

American Indian

Members or descendants of indigenous peoples of the territories that are now the United States, recognized as sovereign nations within the country.

Alaskan Native

Indigenous peoples from Alaska including various Eskimo (Inuit and Yupik), Aleut, and Native American tribes.

Grandparents

The parents of one's parents, serving as a source of wisdom, tradition, and family heritage.