Worldatwork Exam CECP Topic 1 Question 55 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 55
Topic #: 1

[All CECP 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: C

by Lai at Apr 11, 2024, 07:13 AM

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Jesusita

7 days ago

Haha, I think C) Increasing profitability annually is the goal, but budgeting is the means, not the end. It's like trying to lose weight by just stepping on the scale every day.

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Yvonne

8 days ago

I agree, B is the correct choice. Budgeting is all about planning and aligning spending with expected outcomes.

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Lawrence

13 days ago

B) Making choices about spending based on expectations of performance seems like the most logical answer to me. Budgeting should help us allocate resources effectively.

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