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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