Which of the Following Is a Disadvantage of Budgeting

question 138

Multiple Choice

Which of the following is a disadvantage 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 consumes a lot of employee time and energy.

---

Definitions:

Workers

Individuals who perform tasks or jobs for pay, ranging from manual labor to professional occupations.

Units

In economics, units refer to the quantifiable measures used to express the quantity of an item, such as pieces, kilograms, liters, etc., used in transactions or production.

Total Cost

The complete cost of production, encompassing both fixed and variable costs, for a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; decreases as production increases.