Answer-Which of the following is not correct about budgeting?

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.

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

B For budgeting the organisational structure must be clearly defined and responsibility should be assigned to identifiable units within the organisation

C Budgeting does not facilitate in management by exception

D Budgeting is quantifiable in monetary or quantity or both terms

E All are correct

Practice Next