What Is a Limitation of Using Financial Budgets

question 81

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:

Optimum Span

The ideal range or limit within which a specific condition or variable yields the best performance or outcome.

Management Overhead

Represents the costs associated with administrative and management functions that are not directly related to production or service delivery.

Tall Structure

An organization structure that has narrow spans of control and many hierarchical levels.

Wider Spans of Control

Refers to a leadership approach where a single manager or supervisor oversees a larger number of subordinates, indicating a flatter organizational structure.