What Is a Limitation of Using Financial Budgets

question 41

Multiple Choice

What is a limitation of using financial budgets?

• A)They can become a substitute for objectives.
• B)They can hide inefficiencies if done only on precedent.
• C)They can be so detailed that they are cumbersome and expensive.
• D)They are sometimes used as instruments of tyranny.
• E)all of the above

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Definitions:

Supply Policies

Guidelines and rules set by an organization to govern its procurement activities and relationships with suppliers.

Purchasing Consortia

Groups of businesses that come together to aggregate their purchasing volume in order to negotiate better prices and terms from suppliers.

Confidentiality

The requirement to keep certain information private, not disclosing it to unauthorized individuals or parties.

Supply Strategy

A plan for managing the procurement of goods and services to meet organizational needs effectively.