A-LevelAccountingTraditional costing methods9706/12 · May/June 2021 · Q301 Mark

What is not an advantage to a business of preparing budgets?

AThey can motivate managers and employees.

BThey ensure that the business will not make loss.

CThey facilitate coordination and communication.

DThey provide a measure for evaluating performance.

✓ Correct answer

B: They ensure that the business will not make loss.

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2021 Paper 1 Variant 2, question 30.

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