What is a limitation of using financial budgets?
A) They can be so detailed that they are cumbersome and expensive.
B) They can become a substitute for objectives.
C) They can hide inefficiencies if done only on precedent.
D) They are sometimes used as instruments of tyranny.
E) all of the above

Question

Quizplus · Accepted Answer

All of the options mentioned are limitations of using financial budgets. Financial budgets can be overly detailed and time-consuming, leading to unnecessary expenses. If budgets become the sole focus, managers may ignore the larger objectives of the organization. Inefficiencies may be overlooked if budgets are created merely based on past performance. Finally, financial budgets can be used as a tool of control and tyranny by managers, limiting the decision-making power of other employees.

What Is a Limitation of Using Financial Budgets