COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Budgeting is an aid to planning and control.
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Budgets create standards for performance evaluation.
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Budgets help coordinate the activities of the entire organization.
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Budgeting forces managers to think ahead and formalize long-range objectives.
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Budgeting eliminates the need for day-to-day monitoring of operation.
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Detailed explanation-1: -Answer :-The Correct Answer is Option-Budgeting eliminates the need for day-to day monitoring of operations. Explanation :-Yes it is not true that Budgeting eliminates the need for day-to day monitoring of operat… Transcribed image text: Which of the following statements about budgeting is not true?
Detailed explanation-2: -Answer and Explanation: Statement A is incorrect-budgets should not be prepared solely by top management.
Detailed explanation-3: -The correct answer is d; the motivation of employees is not a crucial role of budgeting in an organization because leaders in an organization do not share the budget with their employees.
Detailed explanation-4: -A budget does not give greater control to lower management.
Detailed explanation-5: -In the context of business management, the purpose of budgeting includes the following three aspects: A forecast of income and expenditure (and thereby profitability) A tool for decision making. A means to monitor business performance.