Question

Budgeting supports the planning process by encouraging all of the following activities except a. requiring all organizational units to establish their goals for the upcoming period b. increasing the motivation of managers and employees by providing agreed-upon expectations c. improving overall decision making by considering all viewpoints, options, and cost reduction possibilities d. directing and coordinating operations during the period

Answer 1

Budgeting does not include directing and coordinating operations during the period as this is part of managing the plan, not budgeting itself.

Step-by-step explanation:

Budgeting supports the planning process, but it does not involve certain activities. Specifically, it does not involve directing and coordinating operations during the period as this is more about managing and implementing the plan rather than establishing it through budgeting. Budgeting is important as it encourages goal-setting, increases motivation by providing clear targets, and improves decision making by assessing various options and cost-reductions.

When individuals create a budget, they must evaluate their expenses and income, ensuring that they can cover essential costs. This process often involves making choices which might require giving up non-essential luxuries such as daily coffee trips or streaming services. The budget process takes on additional significance in government and foreign policy, affecting funding and priorities.

In the context of bureaucracy, budgeting may not include actions like empowering Congress, but it does play a role in ensuring finances are used efficiently to achieve an organization's or a nation's objectives. Understanding the importance of budgeting is vital in making sound and purposeful financial decisions, which is a key component of personal and national economic success.

Answer 2

The correct answer is option d. directing and coordinating operations during the period.

Step-by-step explanation:

Budget is a plan which elaborates how the resources of the company are to be spent to achieve desired targets or growth rates.

It helps all the units of the organization to establish goal for the coming period.

It is also helpful for the managers and employees by increasing their motivation as they now have to chase a decided target.

It also helps in estimating cost reduction techniques, alternatives on the basis of last year data.

Since, it is just an estimate it does not provide any help in directing and coordinating operations.

So, the correct answer is option D.