Which of the Following Is NOT an Objective of the Budgeting

question 94

Multiple Choice

Which of the following is NOT an objective of the budgeting process?

• A)To communicate management's plans throughout the entire organization.
• B)To provide a means of allocating resources to those parts of the organization where they can be used most effectively.
• C)To ensure that the company continues to grow.
• D)To uncover potential bottlenecks before they occur.

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Definitions:

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Consumption

The act of using goods and services for personal use, satisfaction, or to fulfill needs, playing a crucial role in economic theories concerning demand and spending.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, showing the level of satisfaction or utility those goods or services provide.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposit funds.