Which of the Following Is NOT a Basic Function of a Budget

question 10

Multiple Choice

Which of the following is NOT a basic function of a budget?

• A) Budgets indicate the need for future short-term financing.
• B) Budgets provide the basis for corrective action when actual figures differ from the budgeted figures.
• C) Budgets compare historical costs of the firm with its current cost performance.
• D) Budgets allow for performance evaluation.

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Definitions:

Gratuitous Promise

A promise for which no consideration is given and which is not legally binding.

Conditional

Something that is subject to one or more conditions or requirements being met before it becomes fully effective or binding.

Future Events

Events or occurrences that have not yet happened but are expected or predicted to happen in the future.

Police Officer

A member of the police force or department, legally vested with the powers to maintain peace, prevent crime, and enforce laws.