Question
- Which of the following is NOT an advantage associated with a budget control system? a. Ensures competition for resources within an organisation b. Ensures the objectives of an organisation are defined c. Facilitates the delegation of responsibility d. Improves communication and coordination
Answer
4.1
(252 Votes)
Zara
Elite · Tutor for 8 years
Answer
a
Explanation
This question is about understanding the advantages of a budgetary control system in an organization.(a): Ensuring resources competition implies creating competitiveness within the department so the resources are well utilized and every department gives their best. This is an advantage.(b): Ensures the objectives of an organisation are defined; the function of budgetary control is to help to plan a company's objectives in terms of figures which ensures defined and measurable objectives for the company which again is an advantage.(c): Facilitates the delegation of responsibility, it means that budgeting allows responsibility to be assigned to certain individuals within the company which promotes accountability and this is an advantage. (d): Improves communication and coordination in an organization is explained in a way that the budgeting process requires dialogue and agreement between the different parts of an organization. All of these options speak to the benefits of a budget control system. However, 'ensuring competition for resources within an organization' could potentially be seen as a disadvantage as well, depending on interpretation. While competition can drive efficiency and productivity, it can also lead to unhealthy internal competition and politics, which may undermine collaboration and teamwork. Between these four though, this therefore is the 'least advantageous'.