Which of the Following Is Not an Advantage of Budgeting

question 29

Multiple Choice

Which of the following is not an advantage of budgeting?

• A) Provides assurance that accounting records are in accordance with generally accepted accounting principles
• B) Forces coordination among departments to promote decisions in the best interests of the company as a whole
• C) Provides advance notice of potential shortages, bottlenecks, or other weaknesses in operating plans
• D) Provides a way to evaluate performance

Understand the concept of market efficiency in varying forms (weak, semistrong, and strong).

Understand the impact of transaction costs on earning excess returns from inside trades.

Grasp the significance of public availability of insider trading information and regulatory disclosure requirements.

Recognize the limitations of earning excess returns through public inside trades.

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Definitions:

Dimensional Analysis

A mathematical technique used to convert units of measurement.

Conversion Formulas

Mathematical equations used for converting units from one system to another, e.g., from metric to imperial.

Conversion Formula

A mathematical formula used to change a measurement from one unit to another.

Milligrams

A unit of mass equal to one thousandth of a gram, commonly used to measure small quantities of substance.