Which of the Following Is a Limitation of Using Past

Multiple Choice

Which of the following is a limitation of using past performance as a basis for judging actual results?

A) It does not account for productivity increases over the periods.
B) It increases the incentive for managers to introduce budgetary slack.
C) It assumes inefficiencies of previous periods without considering possible efficiencies of the budget period.
D) It increases the tendency of senior managers exaggerating changes in future conditions as opposed to changes in current conditions.