To be effective, budgets are prepared independently of organizational forecasts.

Name: To be effective, budgets are prepared independently of organizational forecasts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Budgets are prepared based on organizational forecasts and goals to ensure that they are aligned with the overall strategic plan. Forecasts help in estimating revenues and expenses, which are critical components of the budget. Therefore, budgets cannot be prepared independently of organizational forecasts.

To Be Effective, Budgets Are Prepared Independently of Organizational Forecasts