Which of the following is NOT a valid purpose of budgeting?
A) To communicate targets to managers.
B) To comply with financial reporting requirements.
C) To coordinate the different activities of an organisation.
D) To authorise managers to incur expenditure.

Question

Quizplus · Accepted Answer

Authorising managers to incur expenditure is not a valid purpose of budgeting. Budgeting is used to plan and control the financial resources of an organisation, not to authorise expenditure.

Which of the Following Is NOT a Valid Purpose of Budgeting