Chapter 22, Problem 2QS

To determine

Introduction:

Budgeting is very important process in managing future financing affairs of a business enterprise. So budgeting can result into various benefits or can result into various negative impacts for a business entity.

To choose:

We have to select out of yes or no for given statements with reference to potential benefits & 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.........Budgets can lead to excessive pressure to meet budgeted results.

6.........Budgets can provide incentives for good performance.