Which of the Following Is Not a Benefit of Budgeting

question 67

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 formalises a manager's planning efforts.

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Definitions:

Zero-Coupon Bond

A type of debt security that does not pay interest (coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of principal.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Coupon Interest Rate

The annual interest rate paid on a bond's face value by the bond's issuer, representing the interest income received by bondholders.