Which of the following is NOT a characteristic of the budgeting process?
A) The budget process aids in performance evaluation.
B) The budget process helps coordinate the activities of the organization.
C) The budget process forces management to plan ahead.
D) The budget process ensures that the business will make a profit.

Question

Quizplus · Accepted Answer

The budgeting process does not guarantee that a business will make a profit. It only provides a plan for revenues and expenses, and it is up to the management to execute the plan effectively. Other options are correct characteristics of the budgeting process. A budget helps in evaluating performance by comparing actual results with budgeted amounts. It also helps coordinate different functions and departments within the organization towards common goals, and it forces management to plan and make decisions in advance.

Which of the Following Is NOT a Characteristic of the Budgeting