Which of the following is true of budgets?
A) Budgets eradicate the need to compare a company's actual results with budgeted results.
B) Budgets ensure that the financial goals set by management are achieved.
C) Budgets rule out the need to communicate and coordinate the plans of the organization to each employee.
D) Budgets are financial plans for the future.
E) Budgets delegate the decision making power to the employees.

Question

Quizplus · Accepted Answer

Budgets are financial plans for the future which help organizations to plan and allocate resources, set targets, and monitor performance. Budgets do not eradicate the need to compare actual results with budgeted results, rule out the need for communication and coordination, ensure that financial goals are achieved automatically, or delegate decision-making power to employees.

Which of the Following Is True of Budgets