QUESTION 2 Seri Sdn Bhd operates a chain of holiday resorts throughout Malaysia. The management wants to improvise its current budgetary control system by incorporating activity-based management and simple time series analysis. However, the Chief Executive Officer has some reservations to the effectiveness of this change. The budget for the planning and development department of the company is currently prepared as part of a traditional budgetary planning and control system. The analysis of cost by overheads for the period ended 30 September 2021 where this system is in use is as follows: Budgeted Actual % % Overheads Type Salaries and wages Supplies Consultation and management fees Research and development costs Building rates 62 63 10 11 14 12 12 10 2 4 = 2