1. During the budget process an entity determines its current level of productive capacity is sufficient.

Which of the following is the most likely flow-on effect of this determination?

Group of answer choices

a. The budget will provide for an increase in straight-line depreciation

b. The entity will not budget for additional borrowings

c. The sales budget will be revised upwards

d. Planned maintenance of property, plant & equipment will be postponed

e. None of these are a likely flow-on effect of this determination