Question

Which of the following is not a result of following a well-designed budgeting process?

Multiple Choice

• Improved decision-making processes.

• Improved performance evaluations.

• Improved coordination of business activities.

• Assurance of future profits.

• Improved communication of management's action plans.

Answer 1

Assurance of future profits is not a result of following a well-designed budgeting process.

A budgeting process involves planning the activities to achive desired goals and objectives.

A well-designed budgeting process establishes coordination among all levels of employees and helps in properly communicating the course of action to all levels.

A well-designed budgeting process estoblished better control and helps in performance evaluations by comparing with standards established.

A well-designed budgeting process helps to predict future results however assurance of future profits cannot be established by well-designed budgeting process.

Option D is correct