Answer (D) is correct . An organizational budget requires a significant commitment of internal resources. The single most important factor in assuring its success is for upper management to demonstrate that they take the project seriously and consider it vital to the organization’s future.
Answer (A) is incorrect because Experienced analysts are not crucial to success of a budget; “knowing your business” is as important as training in budget preparation.
Answer (B) is incorrect because Integrated budget software is not the most important factor in budget success; fairly large and sophisticated budgets can be prepared with ordinary spreadsheets.
Answer (C) is incorrect because While they are important, reliable forecasts and trend analyses are not the most important factor; a budget must be flexible enough to adapt to changing circumstances.
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