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A Criticism of Traditional Budgeting Is "Excessive Reliance on Extrapolating

Question 145

Multiple Choice

A criticism of traditional budgeting is "Excessive reliance on extrapolating past trends." Which of the following is a proposal for change to address this criticism?


A) Use activity-based budgeting.
B) Balance financial aspects with nonfinancial.
C) Signal to all employees the need for continuous improvement.
D) Adopt a cross-functional approach.
E) Link budgeting explicitly to strategy.

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