Which of the following is an advantage of the budgeting process?
A) It requires very little input from various departmental managers,leaving them more time to devote to day-to-day activities.
B) It can communicate to employees specific goals and objectives that may be used in evaluating their job performance.
C) It forces management to focus on the past and not be distracted by the day-to-day operations of the business.
D) It requires no communication between various managers in the organisation.

Question

Quizplus · Accepted Answer

Budgeting provides a framework for goal-setting and communicating objectives to employees. This can help employees understand what is expected of them and how their performance will be evaluated.

Option A is incorrect as the budgeting process actually requires significant input from departmental managers.

Option C is incorrect as budgeting is a forward-looking process that involves planning for the future, not just focusing on the past.

Option D is incorrect as the budgeting process typically requires communication and collaboration between various managers in order to develop an accurate forecast.

Which of the Following Is an Advantage of the Budgeting