Which of the following describes a way in which budgeting can assist in decision making?
A) Identifying expected cash shortages.
B) Determining inventory levels.
C) Setting production targets for managers.
D) All of the above.

Question

Quizplus · Accepted Answer

Budgeting can assist in decision making by identifying expected cash shortages, determining inventory levels, and setting production targets for managers. By creating a budget, a company can see where its financial resources are going and make decisions accordingly. The budget can also help managers determine how much inventory to keep on hand based on anticipated sales and production levels. Additionally, by setting specific production targets, managers can better allocate resources and make decisions on hiring, purchasing, and more.

Which of the Following Describes a Way in Which Budgeting