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:

FIFO

First In, First Out, an inventory valuation method where the earliest items added to inventory are the first to be removed, impacting cost of goods sold and inventory valuation.

Costs

The expenses incurred in acquiring or producing goods and services.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, which is carried over from the end of the previous period.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.