Which of the following is not a benefit of budgeting?

Which of the following is not a benefit of budgeting?

A. It uncovers potential bottlenecks before they occur.

B. Does not coordinate the activities of the entire organization by integrating the plans and objectives of the various parts.

C. Provides benchmarks for evaluating subsequent performance.

D. All of these.

E. None of these.

Answer: B. Does not coordinate the activities of the entire organization by integrating the plans and objectives of the various parts.

Many organizations have emerged to benefit from strategic budgeting in the following ways. Another is it assists in identifying possible constraints in advance so that preventive action can be taken. It also has a way of establishing standards upon which one can measure subsequent performance for optimization and control of plans. significantly, budgeting ensures the harmony and coordination of activities within the organization through the alignment of the plans and goals of functional departments or divisions. This integration is aimed at ensuring that, at all levels within the organization, there is coherence as people work with the best of intentions towards achieving the overall goals of the organization. Thus, there is only one option saying “Does not coordinate the activities of the whole organization by integrating the plans and goals of the various parts” that identifies not a positive effect of budgeting but the opposite, that is, a weakness or a negative aspect of ineffective budgeting practices.