A manufacturing plant is under new management.Previous management rewarded quality workmanship.New management's focus is departmental budgets. Department heads are evaluated on their budget monthly, but the budget is not communicated in advance of the evaluation. If the department heads make their budget, it is decreased for the following month. Workers have quit trying. There is a lack of cooperation among departments. Cost savings are valued over quality of product.

a. How could this budget control system be improved?

b. How could an activity-based costing system change the results of the budget, if utilized?

c. how could the use of an activity-based costing system improve the company's ROI and the potential impact on free cash flow?