Preparing a budget does not allow managers to
A)eliminate any variances that would have been created without a budget.
B)help divisions within the organization to communicate with one another.
C)assess whether a division's strategic direction is in line with corporate strategy.
D)All of these answer choices are things which preparing a budget allows managers to do.

Question

Quizplus · Accepted Answer

Preparing a budget helps managers to anticipate variances, not eliminate them entirely. Variances can still occur due to unforeseen circumstances or errors in estimation. Budgets are tools for planning and control, but they cannot eliminate all variances.

Preparing a Budget Does Not Allow Managers to