A bakery estimates its predicted yearly expenditures on ingredients when allocating its annual food budget by adding a correction factor of five percent to its costs from the previous year. This method allows the bakery to quickly and simply account for annual increases in the cost of raw ingredients.
Which of the following, if true, would most call into question the economic soundness of the bakery's method for estimating its food budget?
(A) The bakery might repeatedly account for the use of a costly ingredient that it no longer uses.
(B) Increases in the cost of raw materials have not varied considerably in the past decade.
(C) This method of budgeting might discourage the bakery from developing new and innovative recipes.
(D) The bakery might allocate too little money for its other operating expenses.
(E) Some bakery executives do not believe this is the best practice.
[spoiler]I find both Op A and Op B correct...how u select b/w them????[/spoiler]
Which of the following, if true, would most call into question the economic soundness of the bakery's method for estimating its food budget?
(A) The bakery might repeatedly account for the use of a costly ingredient that it no longer uses.
(B) Increases in the cost of raw materials have not varied considerably in the past decade.
(C) This method of budgeting might discourage the bakery from developing new and innovative recipes.
(D) The bakery might allocate too little money for its other operating expenses.
(E) Some bakery executives do not believe this is the best practice.
[spoiler]I find both Op A and Op B correct...how u select b/w them????[/spoiler]
