Rainbow Inc. recently appointed Margaret Joyce as vice president of finance and asked her to design a new budgeting system. Joyce has changed to a monthly budgeting system by dividing the company's annual budget by twelve. Joyce then prepared monthly budgets for each department and asked the managers to submit monthly reports comparing actual to budget. A sample monthly report for Department A is shown below. Rainbow Inc. Monthly Report for Department A Actual 1,000 Budget 900 Variance 100F Units Variable production costs Direct material Direct labor $2,800 4,800 4,250 $2,700 4,500 $100U 300U Variable factory overhead Fixed costs 4,050 200U Depreciation 3,000 1,000 1,500 1,100 1,000 2,700 300U xes 900 100U Insurance 1,350 150U Administration 990 110U Marketing 900 100U Total costs $19.450 $18.090 $1.360U This monthly budget has been imposed from the top and will create behavior problems. All of the following are causes of such problems except a. the use of a flexible budget rather than a fixed budget. b. top management authoritarian attitude toward the budget process. c. the inclusion of non-controllable costs such as depreciation. d. the lack of consideration for factors such as seasonality.