Which of the Following Is a Weakness Associated with Budgeting

question 68

Multiple Choice

Which of the following is a weakness associated with budgeting?

• A) Budgets do not allow managers to identify problem areas.
• B) Budgets do not facilitate effective control.
• C) Budgets fail to link planning and controlling.
• D) Budgets can limit innovation and change.
• E) Budgets hamper coordination between departments.

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Definitions:

Consumer Trial

The process or strategy of encouraging new customers to try a product for the first time.

Free Samples

Small portions or quantities of a product given away for free to promote or test its effectiveness.

Barriers to Adoption

Factors or obstacles that prevent potential customers from adopting a new product, service, or technology.

Risk

The potential for losing something of value, which can be financial, physical, emotional, or otherwise, often assessed in terms of likelihood and impact.