ACCA MA · Chapter 10 · Question 9 of 11
Which of the following is NOT a purpose of budgeting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To guarantee that the organisation will achieve its planned profit
Explanation
Budgets help with planning, co-ordination, communication, motivation, authorisation and control. A budget is a plan; it cannot guarantee that the planned results will actually be achieved.
More Budgeting MCQs
- Q11Senior management prepares the budget and passes it down to operational managers, who are given little or no opportunity to take part in…
- Q1What is the principal budget factor?
- Q2Budgeted sales for May are 12,000 units, and for June 10,000 units. Opening finished goods inventory on 1 May is 1,500 units. Closing…
- Q3Production for a period is budgeted at 12,500 units. Each unit uses 3 kg of material costing $2 per kg. Opening raw material inventory is…
- Q4Production is budgeted at 12,500 units. Each unit needs 0.6 standard direct labour hours. Idle time is expected to be 10% of hours paid…