Which of the Following Is True of Budgeting

Multiple Choice

Which of the following is true of budgeting?

A) Budgeting forces management to plan for the future.
B) Budgeting creates a plan of action only in terms of production units.
C) Budgeting eradicates the need for keeping a buffer against uncertainties in demand.
D) Budgeting relies on the control cycle to design the planning cycle for future action.
E) Budgeting focuses only on long-term objectives as covered by the planning cycle.