Which of the following statements about budgets and budgeting is FALSE?
A) Budgets help coordinate financial and operational activities.
B) The vast majority of managers use budgeting as an effective cost management tool.
C) Budgeting is the process of formulating an organization's plans.
D) Managers do not use budgets for performance evaluation.

Question

Quizplus · Accepted Answer

Managers do use budgets for performance evaluation. Budgets are often used as a tool to measure actual performance against planned performance, and to identify areas of deviation or improvement.

Which of the Following Statements About Budgets and Budgeting Is