Chapter 20, Problem 2QS

Budgeting benefits C1

For each of the following items 1 through 6, indicate yes if it describes a potential benefit of budgeting or no if it describes a potential negative outcome of budgeting.

_____1. Budgets help coordinate activities across departments.
_____2. Budgets are useful in assigning blame for unexpected results.
_____3. A budget forces managers to spend time planning for the future.
_____4. Some employees might overstate expenses in budgets.
_____5. Budget can lead to excessive pressure to meet budgeted results.
_____6. Budget can provide incentives for good performance.