Final answer:
The statement that is not true regarding the budgetary function of a corporation is that only one budget is necessary to capture all programs. A company usually requires multiple budgets to adequately represent different programs and operations, which together form the comprehensive financial plan.
Step-by-step explanation:
The question pertains to the budgetary function of a corporation. Among the options provided, the statement that is NOT true of the budgetary function is: C) Only one budget is necessary to capture all programs. Corporations typically have to prepare multiple budgets to reflect the various programs and departments within. These might include sales budgets, production budgets, personnel budgets, etc., each serving a different purpose but collectively contributing to the overall financial plan of the company.
A budget is crucial for both planning and control within a corporation. It lays the groundwork for strategy by detailing both the anticipated revenues (receipts) and expenditures (outlays) for a given period. Through the budget, a company aligns its spending with its priorities and available resources, guiding decision-making processes.
Moreover, a budget also plays a significant role in measuring success against previously set criteria, which enables a firm to assess its financial performance. It should reflect the financial goals of the corporation and show the expected impact on the company's future financial situation. In performance evaluations, deviation from the budget might indicate areas where the firm needs to make adjustments.