Which of the following items does not follow from the adoption of a budget?
A) Promote efficiency
B) Deterrent to waste
C) Basis for performance evaluation
D) Guarantee of accomplishing the profit objective

Question

Quizplus · Accepted Answer

A budget does not guarantee the accomplishment of the profit objective, as there are external factors such as competition, economic changes, and market trends that can affect a company's ability to achieve its profit goals. However, a budget can help identify areas of potential waste, promote efficiency and serve as a basis for performance evaluation.

Which of the Following Items Does Not Follow from the Adoption