Question

Which of the following is FALSE regarding the budgeting system? A. The budgeting system aims to communicate management's plans throughout the entire organization. B. The budgeting system helps managers uncover potential bottlenecks before they occur. C. The budgeting system generates a detailed qualitative plan for acquiring and using financial and other resources over a specified forthcoming time period. D. The budgeting system provides a means of allocating resources to those parts of the organization where they can be used most effectively.

Answer 1

Budgeting system- it determines the targets to be achieved. it is a process begins with setting targets followed by plan to achieve targets and comparing results with actual data and follow up action to be taken. All activies and available resourse indentified under budgeting system. Budgeting system identifies bottleneck resourses and make plan according to availability of that resourses so that orgnization can allocate resourse where they can be used most effectively. Resourse also include financial of company so budgeting system also plans for acquiring and using financial over a specified forthcoming time period.

So false statement is A because budgeting system not a aim to communicate management's plans throughout the entire organization.

Correct answer is option A.