A budget can do all of the following EXCEPT:
A)promote coordination among subunits
B)determine actual profitability
C)motivate managers
D)motivate employees

Question

Quizplus · Accepted Answer

While a budget can help allocate resources and track expenses, it cannot determine actual profitability. Profitability is determined by subtracting expenses from revenue, which can only be accurately calculated after the fact. Therefore, a budget can only provide an estimate of profitability based on projected income and expenses.

A Budget Can Do All of the Following EXCEPT