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.

Question

Quizplus · Accepted Answer

Using standards developed by a firm itself may not be based on realized benchmarks, making them unrealistic and leading to inaccurate budgeting.

Which of the Following Is a Disadvantage of Using the Standards