Principles of Managerial Accounting: Week 6

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Which of the following is not a benefit of budgeting?

a. It uncovers potential bottlenecks before they occur.
b. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.
Selected: c. It ensures that accounting records comply with generally accepted accounting principles. This answer is correct.
d. It provides benchmarks for evaluating subsequent performance.

Correct! A budget does not ensure that we are following generally accepted accounting principles.

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