Which of the following is a major benefit of utilizing a budgeting system?
A)It always results in more profitable decisions.
B)It is easier for managers than traditional decision-making models.
C)It saves costs by utilizing historical data to make projections.
D)It facilitates coordination and communication.
E)Once a successful budget is developed, it can be re-used year after year.

Question

Quizplus · Accepted Answer

Utilizing a budgeting system facilitates coordination and communication between different departments and managers, which can lead to more effective decision-making and better overall performance. While budgeting can save costs by utilizing historical data, it is not a guarantee of profitability and may require adjustments and revisions over time. Additionally, developing a successful budget does not necessarily mean it can be re-used year after year without reassessment and adaptation to changing circumstances.

Which of the Following Is a Major Benefit of Utilizing