Question

Generally speaking, budgets are not used to:

a. facilitate communication and coordinate activities.
b. identify a company's most profitable products.
c. evaluate performance.
d. create a plan of action.
e. assist in the control of profit and operations.

Answer 1

b. identify a company's most profitable products.

Step-by-step explanation:

The budget is a review of all expenses incurred and income earned for the business organization during a specific period of time. It can be made monthly, quarterly, half-yearly or on yearly basis as the case may be.

The reason for using the budget is to think about future goals and goals plus include coordination and organizing tasks.

In this, the authority and responsibility should be assigned so that it became easy to analyze the performance.

Moreover, it aims to manage the expenditure control as per the needs and maximizing the profit which can help to attain the future plan.