An early warning signal for the potential of an overdrawn budget is created when:
A)Activity-based costing cannot identify drivers.
B)A bottom-up budget never makes it up the chain of command.
C)Contingency funds are applied for.
D)A top-down process moves too quickly down to the functional managers.

Question

Quizplus · Accepted Answer

The application for contingency funds is a clear signal that the budget may be overdrawn or at risk of going over budget. Contingency funds are typically set aside for unexpected expenses or emergencies, and when they need to be utilized, it indicates that the budget may not have been properly planned or managed.

An Early Warning Signal for the Potential of an Overdrawn