Which option is NOT true concerning a budget manual?

A budget manual is a comprehensive document that aids an organization in the preparation and management of its budget. It serves several crucial functions, making it a significant resource for both small and large organizations, whether private or nonprofit.

The manual acts as a guide by providing clear instructions on how to prepare the budget, ensuring that all staff involved in the budgeting process understand their roles and responsibilities. It outlines essential policies and procedures that govern budgeting within the organization, creating a standardized approach that fosters consistency and clarity.

Incorporating performance measures and benchmarks within the budget manual is also important. This inclusion allows organizations to evaluate how well they are adhering to their financial plans and achieving their financial goals, ultimately facilitating accountability.

While budget manuals can indeed be valuable in small private and nonprofit organizations, they are not limited to these entities. Larger organizations also utilize budget manuals to streamline their budgeting process and maintain control over financial operations. Therefore, the assertion that a budget manual is particularly valuable only in small private and nonprofit organizations does not accurately reflect its utility across different types of organizations.