Which of the following is not an advantage of budgeting? Multiple Choice A. Forces coordination among departments to promote decisions in the best interests of the company as a whole. B. Provides assurance that accounting records are in accordance with generally accepted accounting principles. C. Provides advance notice of potential shortages, bottlenecks, or other weaknesses in operating plans. D. Provides a way to evaluate performance.

Question

06-08-2019
Business

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Which of the following is not an advantage of budgeting? Multiple Choice A. Forces coordination among departments to promote decisions in the best interests of the company as a whole. B. Provides assurance that accounting records are in accordance with generally accepted accounting principles. C. Provides advance notice of potential shortages, bottlenecks, or other weaknesses in operating plans. D. Provides a way to evaluate performance.

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isyllus isyllus · Answer 1 · 2019-08-13T11:54:07+02:00

Answer: The following is not an advantage of budgeting: Provides assurance that accounting records are in accordance with generally accepted accounting principles.

Budget reflects the ordinance of the company i.e. it denotes how enterprise perform and how it should take judgment that will be the best the organization. Therefore, it can be stated that the above option isn't in regards with accounting records and principles.

Therefore, the correct option in this case is (b)