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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › bugdtng
mr john can u xplain n anwser ds question of mine
Q.for which of de followng reason for an orgnisation not to use a bugdet?
A, it faces xtreme uncertainities in its envirnmnt
B. it is teadily growing
C.it doesnt knw bestway to absorb FC
D it does not seek to earn a profit
I think the answer is A.
Because of ‘extreme uncertainties’ is is probably impossible for them to make any sensible budgets that they could expect to achieve.
(Which does not mean they should automatically not prepare a budget – but it is the most likely reason why they might decide not to)
THnxz sir john 🙂
You are welcome 🙂