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 62 63 Supplies 10 11 Consultation and management fees 14 12 Research and development costs 12 10 Building rates 2 4 2