Traditional budgeting has been used successfully for many years because
A) it was simple and not time consuming.
B) departments decide what they want to do.
C) there is focus on results, not processes.
D) the environment was stable and product mix was simple.

Question

Quizplus · Accepted Answer

Traditional budgeting was successful in stable environments with a simple product mix. This is because traditional budgeting relied on historical data and assumptions to make projections for the future. In a stable environment with predictable outcomes, this method can be effective. However, in a changing environment with complex product mix, traditional budgeting may not be as effective.

Traditional Budgeting Has Been Used Successfully for Many Years Because