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    Question

    Which of the following is not correct about budgeting?

    A Budgeting is a plan of action based on past performance and governed by rational judgment of factors that will influence the course of business in future Correct Answer Incorrect Answer
    B For budgeting the organisational structure must be clearly defined and responsibility should be assigned to identifiable units within the organisation Correct Answer Incorrect Answer
    C Budgeting does not facilitate in management by exception Correct Answer Incorrect Answer
    D Budgeting is quantifiable in monetary or quantity or both terms Correct Answer Incorrect Answer
    E All are correct Correct Answer Incorrect Answer

    Solution

    Budgeting is a plan for future. a properly prepared budget allows management to follow the management-by-exception principle by devoting attention to results that deviate significantly from planned levels.

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