Which of the following statements is true of the budgeting process?
A) If a company carefully plans for its future, there will be no need to make modifications during the budget period.
B) It is a continuous process that encourages communication.
C) It shows the actual performance of the business.
D) Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.

Question

Quizplus · Accepted Answer

The budgeting process is a continuous process that encourages communication between managers and employees as they work together to achieve the budget goals. Option A is incorrect since modifications may be necessary even with careful planning. Option C is incorrect since the budget shows planned performance, not actual performance. Option D is incorrect since managers and employees may be motivated by other factors such as incentives or recognition, not just by monitoring of their work.

Which of the Following Statements Is True of the Budgeting