The process of preparing a budget:
A)forces coordination and communication across business functions.
B)reduces overcapacity.
C)promotes production automation.
D)increases accounting efficiencies.

Question

Quizplus · Accepted Answer

The process of preparing a budget involves coordinating and communicating across business functions, such as sales, production, and finance, to ensure all departments are aligned and working towards common goals. This helps to reduce inefficiencies and redundancies, as well as identify areas where cost savings can be realized. While the budgeting process may indirectly lead to reductions in overcapacity or increased accounting efficiencies, these outcomes are not its primary objectives.

The Process of Preparing a Budget