Question：Which of the following would not be considered to be an objective of budgeting?

　　A. Performance evaluation.

　　B. Authorisation.

　　C. Resource allocation.

　　D. Expansion.

　　The correct answer is: Expansion.

　　解析：Although plans to expand may underlie the framework within which an organisation's budget is set, expansion is not itself an objective of the budgetary planning process. In fact, some organisations may include a reduction in activity in their budgetary plans.

　　In many budget systems, expenditure that is included in the budget is automatically approved as expenditure which may be incurred by the budget holder, without further approval being sought.

　　The budget acts as an authorisation mechanism and therefore authorisation is an objective of budgeting.

　　Budgets ensure that the organisation sets out in the right direction for the forthcoming period. It is comparison of the actual results with the budget which ensures that the organisation continues in the right direction, however. An objective of the budget is therefore to provide a basis for performance comparison.

　　Most organisations work with limited resources. By considering carefully the demands on those resources from each budget centre, an objective of the budgeting process is to ensure that these resources are used in the most effective way.