Which of the Following Is NOT an Advantage of Budgeting

question 46

Multiple Choice

Which of the following is NOT an advantage of budgeting?

• A)It forces managers to plan.
• B)It provides resource information that can be used to improve decision making.
• C)It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance.
• D)It provides organizational independence.

Understand the relationship between market demand and equilibrium price in purely competitive markets.

Understand how fixed, variable, and total costs affect a firm’s pricing and production decisions.

Examine the impact of economic profits on a firm’s production decisions.

Interpret data to determine the profit-maximizing rule and its application.

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Definitions:

Employee Fraud

Dishonest activities conducted by employees to steal or misuse an organization's resources or assets for personal gain.

Primary Factors

Fundamental elements or causes that contribute significantly to a result, situation, or process.

Deposits In Transit

Funds that have been deposited by a company but not yet recorded by its bank, leading to discrepancies in bank reconciliation.

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.