Question

A potential negative outcome of budgeting is that multiple choice 2 it can be a motivating force when guidelines are followed. employees may understate sales budgets and overstate expenses. employees may not fully spend their budgeted amounts. employees may overstate sales budgets and understate expenses.

Answer 1

Answer:

employees may understate sales budgets and overstate expenses.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.

A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. Thus, this would go a long way to alter or affect the budget plan.