Which of the following are not purposes for having a budget?

Which of the following are not purposes for having a budget?


a. being accountable for expenses

b. evaluation program financial performance

c. developing a financial plan

d. determining if revenue generated is sufficient to cover expenses


Answer: d. determining if revenue generated is sufficient to cover expenses

Determing if revenue generated is sufficient to cover expenses is not a purpose for having a budget; rather, it is a method of profit-and-loss analysis. Without a budget, it would not be possible to determine what actual revenue was generated because there would be no clear delineation between expenses and profit/revenue.


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