Which of the following is not the limitation of budgetary control?
A. Budgets are based on forecasts which may not be true
B. Installation and operation of a system of budgetary control are costly
C. Budget is a tool of management and not a substitute for management
D. Budgets do not pinpoint the lack of efficiency or the presence of it
Answer: Option D
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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