Which of the following is not a benefit of budgeting

Asked by admin @ in Business viewed by 286 People

Which one of the following is not a benefit of budgeting?

A) It requires all levels of management to plan ahead on a recurring basis.
B) It provides definite objectives for evaluating performance.
C) It provides assurance that the company will achieve its objectives.
D) It facilitates the coordination of activities.

Answered by admin @


Answer:  Option C

                       

Explanation: Budgeting refers to the process under which an organisation tries to anticipate how much of their resources will be procured and used in the future for effectively complete their operations.

Budgeting is usually done by the accountants on the basis of past experiences and future expectations. Therefore, they can be seen as reliable but does not guarantee any kind of success as future is not certain.


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