Question

Which of the following is NOT an advantage of budgeting?
a.It provides organizational independence.
b.It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance.
c.It provides resource information that can be used to improve decision making.
d.It forces managers to plan'

Answer 1

Answer:

a.It provides organizational independence.

Explanation:

Budget is a statement of income and expenditure of a certain period. Budgets are useful for forecasting the operating activities and financial position of a business enterprise and it ensures good business practice because they plan for future.

Organizational independence is a state in which an organization is not vulnerable for personnel turnover. Independent Organizations are normally mon profits or non government organizations and they are defined to be a collection of people who to pursue a charitable goal be it local, national or global level. Budgeting is applicable on dependent organizations instead of independent Organizations.