Which of the following may be considered to be objectives of budgeting?(i) Co-ordination(ii) Communication(iii) Expansion(iv) Resource allocation
A、All of them
B、(i), (ii) and (iv)
C、(ii), (iii) and (iv)
D、(ii) and (iv)
A、All of them
B、(i), (ii) and (iv)
C、(ii), (iii) and (iv)
D、(ii) and (iv)
【参考答案及解析】
Coordination (i) is an objective of budgeting. Budgets help to ensure that the activities of all parts of the organisation are coordinated towards a single plan.Communication (ii) is an objective of budgeting. The budgetary planning process communicates targets to the managers responsible for achieving them, and it should also provide a mechanism for junior managers to communicate to more senior staff their estimates of what may be achievable in their part of the business.Expansion (iii) is not in itself an objective of budgeting. Although a budget may be set within a framework of expansion plans, it is perfectly possible for an organisation to plan for a reduction in activity.Resource allocation (iv) is an objective of budgeting. Most organisations face a situation of limited resources and an objective of the budgeting process is to ensure that these resources are allocated among budget centres in the most efficient way.
Coordination (i) is an objective of budgeting. Budgets help to ensure that the activities of all parts of the organisation are coordinated towards a single plan.Communication (ii) is an objective of budgeting. The budgetary planning process communicates targets to the managers responsible for achieving them, and it should also provide a mechanism for junior managers to communicate to more senior staff their estimates of what may be achievable in their part of the business.Expansion (iii) is not in itself an objective of budgeting. Although a budget may be set within a framework of expansion plans, it is perfectly possible for an organisation to plan for a reduction in activity.Resource allocation (iv) is an objective of budgeting. Most organisations face a situation of limited resources and an objective of the budgeting process is to ensure that these resources are allocated among budget centres in the most efficient way.