Which of the Following Is a Disadvantage of Using the Standards

question 4

Multiple Choice

Which of the following is a disadvantage of using the standards developed by a firm itself to develop a budget?

• A) A firm's inefficiencies will be part of the data.
• B) They are not based on realized benchmarks and can be unrealistic
• C) The expected future changes are not included in the standards.
• D) The flexible-budget amounts are difficult to determine.

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Definitions:

Motivational Problems

Issues or barriers that negatively affect an individual's enthusiasm, energy, or willingness to continue with a task.

Instrumentality

The belief that performance is related to rewards.

Expectancy Theory

A motivational theory suggesting that individual motivation to perform is influenced by the expectation that effort will lead to performance and performance to desired rewards.

Need For Affiliation

A psychological drive that motivates individuals to seek social connections, acceptance, and relationships with others.