Question

For each of the following items 1 through 6, indicate yes if it describes a potential benefit of budgeting or no if it describes a potential negative outcome of budgeting.

4. Some employees might overstate expenses in budgets

Short answer

No

Step-by-step solution

Introduction

Budgets are bifurcated into two parts, i.e., the Actual budget and the Expected budget.

Reason

If an employee is stating any further expenses in the organization's budget, it reflects a negative outcome. Since each expenditure made in an organization carries an invoice or bill of its occurrence. And overstating the expenses will lead to a loss for the firm.