An early warning signal for the potential of an overdrawn budget is created when:
A)activity-based costing cannot identify drivers.
B)a bottom-up budget never makes it up the chain of command.
C)contingency funds are applied for.
D)a top-down process moves too quickly down to the functional managers.

Question

Quizplus · Accepted Answer

Applying for contingency funds indicates that unexpected expenses have already been incurred or are expected, which means that the budget may be overdrawn.

An Early Warning Signal for the Potential of an Overdrawn