Question

Which of the following is true of budgeting? Question 1 options: Budgeting forces management to plan for the future. Budgeting creates a plan of action only in terms of production units. Budgeting eradicates the need for keeping a buffer against uncertainties in demand. Budgeting relies on the control cycle to design the planning cycle for future action. Budgeting focuses only on long-term objectives as covered by the planning cycle.

Answer 1

Answer:

correct option is Budgeting forces management to plan for the future.

Explanation:

The budget depends on the control cycle to design the planning cycle for future action. Because budget is the only way to compare reality in determining performance evaluation, but budget is not in the nose of planning the future                                                          

so correct option is Budgeting forces management to plan for the future.