Which of the following is true of a budget?
A) Budgets are used to express only the operational plans and not the strategic plans of a company.
B) Budgets do not account for nonfinancial aspects of the upcoming period.
C) Budgets are most useful when they are planned independent of the company's strategic plans.
D) Budgets help managers to revise their plans and strategies.

Question

Quizplus · Accepted Answer

Budgets help managers to revise their plans and strategies. Budgets are an important tool for managers to plan and control the financial resources of a company. They help to set targets and monitor performance, but they also provide a framework for revising plans and strategies in response to changes in the business environment. Therefore, option D is the correct answer. Option A is incorrect because budgets can reflect both operational and strategic plans. Option B is incorrect because budgets can include nonfinancial aspects such as production targets, staffing levels, and marketing plans. Option C is incorrect because budgets should be aligned with the company's strategic plans to ensure that financial resources are aimed at achieving strategic goals.

Which of the Following Is True of a Budget