Which one of the following is not a benefit of budgeting? It facilitates the coordination of activities. It provides assurance that the company will achieve its objectives. It provides definite objectives for evaluating performance. It requires all levels of management to plan ahead on a recurring basis.

Answer: It provides assurance that the company will achieve its objectives

Explanation:

A budget is a financial plan for a particular period which is usually a year.

The act of making a budget is budgeting.

The advantages of a budget are:

1. It shifts the attention of the management from the short term to the longer term.

2. It enhances performance evaluation by creating benchmarks against which to measure performance.

3. It enhances proper cash allocation.

Limitations of budgeting

1. The success and usefulness of budgeting is dependent on the cooperation of management.

2. It can be time consuming.