Financial managers should
A) ignore minor budgeting problems and concentrate on major problems when budgeting.
B) establish a means of monitoring financial performance on an interim basis.
C) prepare budgets and hope for the best.
D) hire a person to go over interim budgets.
E) fire or demote individual managers when budgeting goals are not achieved.

Question

Quizplus · Accepted Answer

Establishing a means of monitoring financial performance on an interim basis is essential for financial managers to ensure that they can detect and address budgeting problems before they escalate. Ignoring minor budgeting problems or preparing budgets and hoping for the best are not effective strategies, while hiring a person to go over interim budgets or firing/demoting individual managers based on budgeting goals only is not a comprehensive solution. Therefore, the best choice is to establish a monitoring mechanism.

Financial Managers Should