What is a disadvantage of an activity-budgetary system?
A) It supports process management.
B) It supports continuous improvement.
C) It helps improve the efficiency of necessary activities.
D) It emphasizes cost reduction assuming one unit-based driver.

Question

Quizplus · Accepted Answer

The disadvantage of an activity-budgetary system is that it emphasizes cost reduction assuming one unit-based driver, which may not accurately reflect the actual cost drivers of activities. This can lead to inaccurate budgeting and decision-making. The other options listed are advantages of an activity-based system.

What Is a Disadvantage of an Activity-Budgetary System