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.

---

Definitions:

Slave Population

The group of people who were forcibly brought to and held in the Americas and other regions to work without freedom or rights from the 16th to 19th centuries.

Imported Africans

Refers to African people forcibly taken from their homelands and transported primarily to the Americas to be sold into slavery from the 16th to the 19th centuries.

Jamestown

The first permanent English settlement in North America, established in Virginia in 1607.

Spanish Rule

The period of history when various territories were under the administrative control and governance of Spain, particularly in the Americas and the Philippines.