Which of the Following Is Not a Benefit of Budgeting

question 4

Multiple Choice

Which of the following is not a benefit of budgeting?

• A)It reduces the need for tracking actual cost activity.
• B)It sets benchmarks for evaluation performance.
• C)It uncovers potential bottlenecks.
• D)It formalizes a manager's planning efforts.

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Definitions:

Liability

Debts or monetary commitments that a firm has to settle with others, requiring the provision of economic benefits such as cash, products, or services over a period.

Expense

Costs incurred by a business in the process of earning revenue, typically categorized as fixed, variable, or periodic.

Accrual

Accrual is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Balance Sheet

A document showcasing a business's assets, liabilities, and owner's equity at a certain point in time.