Which of the following is NOT a basic function of a budget? - 4569

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 Which of the following is NOT a basic function of a budget?

a.Budgets indicate the need for future financing.

b.Budgets provide the basis for corrective action when actual figures differ from the budgeted figures.

c.Budgets compare historical costs of the firm with its current cost performance.

d.Budgets allow for performance evaluation.

A budget is a quantitative assessment of future actions. The difference, between the inflows and outflows shows the amount of funding required. A budget can also be used for performance evaluation.

 

Solution Description

Which of the following is NOT a basic function of a budget?

          a.   Budgets indicate the need for future financing.