All of the following are advantages of budgeting except
A) Budgeting improves communication within the organization.
B) Budgeting improves coordination among departments.
C) Budgeting instills a use-it-or-lose-it mindset among the managers.
D) Budgeting provides the basis for evaluating employee performance.

Question

Quizplus · Accepted Answer

Budgeting is an adequate way to improve and monitor revenue generation activities in any organization. But, in the absence of proper controls, budgeting can lead to ethical issues such as budgetary slack and an organizational use-it-or-lose-it attitude.

All of the Following Are Advantages of Budgeting Except