Worldatwork Exam c8 Topic 2 Question 79 Discussion

Actual exam question for Worldatwork's c8 exam

Question #: 79
Topic #: 2

[All c8 Questions]

What best describes the primary purpose of budgeting?

ALimiting spending to a fixed percentage of organizational revenue

BMaking choices about spending based on expectations of performance

CIncreasing profitability of the business annually to maximize shareholder/owner value

DComplying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Show Suggested Answer

Suggested Answer: B

by Nelida at Sep 16, 2024, 12:08 PM

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India

3 months ago

B is the clear winner here. Budgeting is all about making smart financial choices, not just ticking boxes for compliance.

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Wilda

2 months ago

Definitely, budgeting is more than just following rules. It's about strategy.

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Edwin

2 months ago

I think B is the best option too. It's about planning for the future.

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Reuben

2 months ago

I agree, budgeting is all about making informed decisions.

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Audra

4 months ago

I believe budgeting is also about complying with local legislation and maintaining accurate records for financial reports and taxes.

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Alana

4 months ago

I agree with Stefania. Budgeting helps us allocate resources efficiently and achieve our financial goals.

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Stefania

4 months ago

I think the primary purpose of budgeting is making choices about spending based on expectations of performance.

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Tegan

4 months ago

Haha, option C is like the business version of 'get rich quick' schemes. Budgeting is more about planning, not just increasing profits.

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Arlen

4 months ago

D is a bit too specific and focused on compliance, while C seems more about maximizing profits than the actual purpose of budgeting.

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Muriel

3 months ago

C) Increasing profitability of the business annually to maximize shareholder/owner value

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Jutta

3 months ago

B) Making choices about spending based on expectations of performance

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Walton

4 months ago

A) Limiting spending to a fixed percentage of organizational revenue

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Brock

4 months ago

I agree, B is the best answer. Budgeting is all about aligning your expenses with your goals and expectations for the business.

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Jackie

4 months ago

Option B seems like the most logical choice here. Budgeting should be about making informed decisions based on expected performance, not just limiting spending.

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Paris

3 months ago

I see your point, but complying with legislation is also crucial for budgeting.

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Lucina

3 months ago

True, but option B focuses more on making informed decisions.

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Reid

3 months ago

But option C also makes sense, increasing profitability is important for the business.

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Catina

3 months ago

I agree, option B is about making choices based on performance.

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