Which of the following factors is a disadvantage of preparing operating budgets?
A)It provides resource information that can be used to improve decision making.
B)It improves communication and coordination.
C)It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance.
D)It can be very time consuming and resource intensive.

Question

Quizplus · Accepted Answer

Preparing operating budgets can be very time consuming and require significant resources, which can be a disadvantage for companies with limited time and resources. However, options A, B, and C are all advantages of preparing operating budgets, as they provide valuable information and help improve decision making, communication, and resource management.

Which of the Following Factors Is a Disadvantage of Preparing