Question

Budgeting provides all of the following EXCEPT

A. a means to communicate the organization's short-term goals to its members.
B. support for the management functions of planning and coordination.
C. a means to anticipate problems.
D. an ethical framework for decision making.

Answer 1

Budgeting helps to track finances and addresses planning, coordination, and problem anticipation but does not provide an ethical framework.

Step-by-step explanation:

Budgeting provides a means to track money flows—what is coming in and going out—in order to identify wasteful expenses and help achieve financial goals. However, it does not inherently provide an ethical framework for decision making; rather, it supports planning, coordination, and the anticipation of potential challenges in financial management. When groups make decisions, there is often alignment on general goals but differences on specifics, which generates transaction and conformity costs. A good budget facilitates informed choices, even when it means foregoing some desires for greater goals, such as saving for a concert or planning for significant financial commitments like education or purchasing a home.