Which of the following is NOT a benefit of budgeting?
A) It uncovers potential bottlenecks before they occur.
B) It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.
C) It ensures that accounting records comply with generally accepted accounting principles.
D) It provides benchmarks for evaluating subsequent performance.

Question

Quizplus · Accepted Answer

Budgeting focuses on planning, coordinating and evaluating financial performance, it is not primarily concerned with ensuring that accounting records comply with generally accepted accounting principles (GAAP). Compliance with GAAP is the responsibility of the accounting department and other relevant regulatory bodies.

Which of the Following Is NOT a Benefit of Budgeting