If budgets are to be effective there must be
A) a history of successful operations.
B) independent verification of budget goals.
C) an organizational structure with clearly defined lines of authority and responsibility.
D) excess plant capacity.

Question

Quizplus · Accepted Answer

For budgets to be effective, there must be an organizational structure with clearly defined lines of authority and responsibility. This ensures that each person knows their role in achieving the budget goals and can be held accountable for their performance. A history of successful operations, independent verification of budget goals, and excess plant capacity can all contribute to effective budgeting, but they are not the most critical factor.

If Budgets Are to Be Effective There Must Be