How do budgeted cost rates motivate the support-department manager to improve efficiency? LOT OA. Budgeted cost rates motivate the manager of the support department to improve efficiency because user divisions pay for any costs or inefficiencies of the support department that cause actual rates to exceed budgeted rates. OB. Budgeted cost rates motivate the manager of the support department to improve efficiency because the support department bears the risk of any unfavorable cost variances. OC. Budgeted cost rates motivate the manager of the support department to improve efficiency because they would likely view the budgeted rates positively if unfavorable cost variances occur due to price increases outside of his or her control. OD. All of the above are correct.

How do budgeted cost rates motivate the support-department manager to improve efficiency? A. Budgeted cost rates motivate the manager of the support department to improve efficiency because user divisions pay for any costs or inefficiencies of the support department that cause actual rates to exceed budgeted rates. B. Budgeted cost rates motivate the manager of the support department to improve efficiency because the support department bears the risk of any unfavorable cost variances. C. Budgeted cost rates motivate the manager of the support department to improve efficiency because they would likely view the budgeted rates positively if unfavorable cost variances occur due to price increases outside of his or her control. D. All of the above are correct