According to Certo,the Major Pitfalls of Budgets Include All but Which

question 52

Multiple Choice

According to Certo,the major pitfalls of budgets include all but which of the following?

• A) Ignoring the need to change budgets periodically
• B) Increasing expenses each year without justification
• C) The manager's trying to execute the budget unilaterally, without assistance from the governing board
• D) Placing too much emphasis on relatively insignificant organizational expenses

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Definitions:

Controlling

A management function that involves monitoring and evaluating performance to ensure that organizational objectives are achieved efficiently and effectively.

Operating Results

The summary of a company's revenues, expenses, and net income or loss for a specific period of time, reflecting its business performance.

Expected Results

Anticipated outcomes or performance measurements, based on planned activities, goals, or strategies.

Management Process

The five basic management functions of (1) planning, (2) directing, (3) controlling, (4) improving, and (5) decision making.