Question

Budgeting supports the planning process by encouraging all of the following activities except a. requiring all organizational units to establish their goals for the upcoming period b. increasing the motivation of managers and employees by providing agreed-upon expectations c. improving overall decision making by considering all viewpoints, options, and cost reduction possibilities d. directing and coordinating operations during the period

Answer 1

Answer:

The correct answer is option d. directing and coordinating operations during the period.

Explanation:

Budget is a plan which elaborates how the resources of the company are to be spent to achieve desired targets or growth rates.

It helps all the units of the organization to establish goal for the coming period.

It is also helpful for the managers and employees by increasing their motivation as they now have to chase a decided target.

It also helps in estimating cost reduction techniques, alternatives on the basis of last year data.

Since, it is just an estimate it does not provide any help in directing and coordinating operations.

So, the correct answer is option D.