Question

Budgets are said to be useful in promoting forward thinking and identification of short-term problems, because:

Select one:

a. None of these

b. management can react to problem areas as they occur

c. management can foresee future promotion opportunities

d. All of these

e. potential problem areas can be identified early enough to allow management to explore ways of overcoming the problem

Answer 1

answer : e) potential problem areas can be identified early enough to allow management to explore the ways of overcoming the problem

explanation

budgets are said to be useful in promoting forward thinking and identification of short term problems because potential problem areas can be identified early enough to allow management to explore the ways of overcoming the problem

budgets will helpful in cordination of various sections of the business .

budgets will be useful to motivate managers for better performance .

budgets are useful to compare the actual performance to the standards so it is the better tool of control .