Which of the Following Is NOT an Advantage of Budgeting

question 46

Multiple Choice

Which of the following is NOT an advantage of budgeting?

• A)It forces managers to plan.
• B)It provides resource information that can be used to improve decision making.
• C)It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance.
• D)It provides organizational independence.

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Definitions:

Industry Expands

The process of growth within a specific sector of the economy, characterized by an increase in output, sales, or the number of operators.

Average Total Cost Curve

A graphical representation showing the average total cost of producing different quantities of output.

Purely Competitive Firm

A company that operates in a market where there are many buyers and sellers, the products are homogeneous, and there are no barriers to entering or exiting the market.

Economic Profit

The financial delta observed when a business's total outgoings, including every form of cost, are removed from its total intake.