Survey Of Accounting
Survey Of Accounting
4th Edition
ISBN: 9780077862374
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 14, Problem 1Q
To determine

Whether the given statement is correct

Expert Solution & Answer
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Explanation of Solution

Given statement:

The budgets are beneficial only to the small scale companies as they can estimate the sales with accuracy.

Whether the given statement is correct:

The statement is incorrect as budgets are useful for both the small and large companies. Budgets are the tool of communication where the company communicates its objectives through budgets in a document by formalizing the plans framed by management.

Budgets and these kinds of benefits are applicable to all sizes of the companies which operate at various levels of complexity.

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