16.3k views
0 votes
Which of the following items does not follow from the adoption of a budget?

A) Promote efficiency
B) Deterrent to waste
C) Basis for performance evaluation
D) Guarantee of accomplishing the profit objective

User Aserwin
by
7.3k points

1 Answer

4 votes

Final answer:

Adopting a budget promotes efficiency, deters waste, and provides a basis for performance evaluation, but it does not guarantee that profit objectives will be accomplished, as many external and internal factors can affect the outcome.

Step-by-step explanation:

The item that does not follow from the adoption of a budget is D) Guarantee of accomplishing the profit objective. While adopting a budget can promote efficiency and serve as a deterrent to waste, and it often provides a basis for performance evaluation, it does not inherently guarantee that the profit objectives will be accomplished. A budget is a financial plan which lays out expected revenues and expenditures over a period, but its successful implementation depends on many factors, including market conditions, company performance, and unforeseen expenses. Even with a well-formulated budget, there are no guarantees in business, and profits will still depend on the entity's ability to effectively execute the strategy and adapt to changing circumstances.

User Muhammad Altabba
by
8.1k points