Which of the Following Is Not a Benefit of Budgeting

question 11

Multiple Choice

Which of the following is not a benefit of budgeting?

• A)It allows for coordination between various business units.
• B)It sets goals for the organization.
• C)It formalizes the plans of management.
• D)It reduces the need for analysis with regard to company expenses

Reconcile bank statements and checkbook balances, and understand the concept of outstanding checks.

Understand the impact of tax rates on savings and investments and calculate the after-tax rate of return.

Identify key terms related to the cost of borrowing for corporations and the insurance of deposits by the FDIC.

Recognize the use and implications of credit in personal finance, including home mortgages and credit laws.

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Definitions:

Authority And Responsibility

A management principle stating that a person with authority (power to make decisions) should also be responsible for the outcomes of those decisions.

Performance Evaluation

The process of assessing the performance of employees, processes, or systems against set benchmarks or standards.

Financial Budgets

Detailed plans that outline an organization's financial goals and the strategies to achieve them, including projections of income, expenses, and cash flow.

Operating Budgets

An operating budget details the forecasted revenue and expenses for the day-to-day operations of a company for a specific period.