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.

Question

Quizplus · Accepted Answer

Budgets do not compare historical costs of the firm with its current cost performance. Rather, they compare the projected costs and revenues with actual costs and revenues to evaluate performance and identify areas that require corrective action.

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