Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 21 - Budgetary Planning - Self-Test Questions - Page 1111: 1

Answer

C - enables disciplinary action to be taken at every level of responsibility

Work Step by Step

Budgeting has several benefits: it allows management to plan ahead, allows activities to be coordinated, and can serve as a warning system for potential problems (variances). However, enabling disciplinary action is not a benefit of budgeting.
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