Which of the Following Is an Advantage of the Budgeting

question 104

Multiple Choice

Which of the following is an advantage of the budgeting process?

• A) It requires very little input from various departmental managers, leaving them more time to devote to day-to-day activities.
• B) It can define specific goals and objectives that may be used in evaluating future job performance.
• C) It forces management to focus on the past and not be distracted by the day-to-day operations of the business.
• D) It requires no communication between various managers in the organization.

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Definitions:

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

U.S.GAAP

United States Generally Accepted Accounting Principles; a set of accounting standards used in the U.S. for financial reporting.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.

Warranty Expenses

Costs incurred by a company to repair or replace products under warranty, recognized as a liability when products are sold.