Which of the following statements is true of the budgeting process?
A)It includes qualitative targets of the company, not just quantitative.
B)It is a continuous process.
C)It shows the actual performance of the business.
D)Its success is not dependent on human behavior.

Question

Quizplus · Accepted Answer

The budgeting process is a continuous process where plans and targets are regularly reviewed and updated. It is not a one-time event but a cycle that repeats annually or more frequently depending on the business's needs. Therefore, option B is the correct answer. Option A is incorrect as budgeting includes both qualitative and quantitative targets. Option C is incorrect as budgeting shows the planned performance of the business, not the actual performance. Option D is incorrect since budgeting involves human behavior and their ability to stick to the budgeted plan, control spending, and achieve the desired outcome.

Which of the Following Statements Is True of the Budgeting