Worldatwork Exam c8 Topic 5 Question 89 Discussion

Actual exam question for Worldatwork's c8 exam

Question #: 89
Topic #: 5

[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 Terrilyn at Feb 12, 2025, 10:12 PM

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Gearldine

4 days ago

While option A is a good constraint, I think the real power of budgeting lies in option B - making strategic choices to achieve desired performance. That's my pick.

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Annice

8 days ago

Haha, option D is like the boring older sibling of the bunch. Budgeting is about more than just compliance and record-keeping, am I right? I'm going with option B.

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Carline

12 days ago

Option C sounds like a great way to maximize shareholder value, but I'm not sure that's the primary purpose of budgeting. I'd go with option B.

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Luann

1 days ago

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

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Myong

23 days ago

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

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Alverta

24 days ago

I think option B is the correct answer. Budgeting is all about making informed decisions based on expected performance and financial projections.

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Vi

1 days ago

I agree, budgeting helps us make choices about spending based on what we expect to achieve.

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Rene

11 days ago

I think option B is the correct answer. Budgeting is all about making informed decisions based on expected performance and financial projections.

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Marshall

1 months ago

I agree with Mindy. Budgeting helps us allocate resources effectively to achieve our goals.

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Mindy

1 months ago

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

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