Which of the Following Is Not a Major Benefit of Budgeting

question 12

Multiple Choice

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

• A)Budgeting compels managers to think ahead.
• B)Budgeting provides definite expectations that are the best framework for judging subsequent performance.
• C)Budgeting aids managers in coordinating their efforts so the objectives of the organization as a whole match the objectives of its parts.
• D)Budgeting allows managers to operate day-to-day, reacting to current events rather than planning for the future.

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Definitions:

Total Overhead Cost

The comprehensive sum of all indirect costs involved in operating a business, not directly tied to a specific product or service.

Planning Budget

A budget prepared in advance of a specific budget period, serving as a financial plan for achieving strategic goals.

Other Expenses

Costs that do not directly relate to the primary business activities, such as interest payments or losses from asset sales.

Service Company

A business that generates revenue through providing intangible products or services, rather than selling physical goods.