Which of the following is not a benefit of budgeting?
A)It reduces the need for tracking actual cost activity.
B)It sets benchmarks for evaluation performance.
C)It uncovers potential bottlenecks.
D)It formalizes a manager's planning efforts.

Question

Quizplus · Accepted Answer

Budgeting requires tracking actual cost activity to ensure that budgeted amounts are accurate and being followed. Therefore, budgeting does not reduce the need for tracking actual cost activity; it actually increases it.

Which of the Following Is Not a Benefit of Budgeting