What Is a Limitation of Using Financial Budgets

question 5

Multiple Choice

What is a limitation of using financial budgets?

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

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Definitions:

Quality Cost Report

A detailed financial report outlining the costs associated with preventing, detecting, and correcting defective work or products.

Quality Cost Report

A summary detailing the costs associated with ensuring the quality of products, including prevention, appraisal, and failure costs.

Internal Failure Costs

Costs incurred to correct products or services before they are delivered to the customer as part of quality control processes.

Prevention Cost

The cost incurred to prevent defects in products or services, including costs related to quality planning and assurance.