A disadvantage of using actual input data from past periods is that past data can include inefficiencies such as wastage of direct materials.

Question

Quizplus · Accepted Answer

Past data can include inefficiencies and wastage of direct materials, which can affect the accuracy of future projections if these inefficiencies are not accounted for properly. This is a disadvantage of using actual input data from past periods.

A Disadvantage of Using Actual Input Data from Past Periods