Multiple Choice QuestionAll of the following are potential negative outcomes of budgeting except:Multiple choice question.employees might always spend their budgeted amount even on unnecessary itemsoverstatement of sales and understatement of expensesunderstatement of sales budgets and overstatement of expense budgetsemployees may engage in unethical behavior
Question
Multiple Choice QuestionAll of the following are potential negative outcomes of budgeting except:Multiple choice question.employees might always spend their budgeted amount even on unnecessary itemsoverstatement of sales and understatement of expensesunderstatement of sales budgets and overstatement of expense budgetsemployees may engage in unethical behavior
Solution
The correct answer is: "overstatement of sales and understatement of expenses". This is not a negative outcome of budgeting, but rather a potential misuse or misrepresentation within the budgeting process. The other options all describe potential negative outcomes that can occur due to poor budget management or unethical behavior.
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