Which of the following could be a result of poor management of budgets?

The identification of variances in budgets as a result of poor management highlights the critical nature of effective budgeting within procurement and supply. When budgets are poorly managed, discrepancies often arise between what was planned and what is actually spent. These variances may indicate overspending or underspending in various areas, leading to a lack of financial control and potentially undesirable consequences for the organization. Such variances signal that the budget process needs attention, whether that involves a reevaluation of expenses, better forecasting, or closer monitoring of financial performance.

In contrast, the other options typically reflect positive outcomes of sound budget management. Increased efficiency, quality improvement, and cost reduction are often results of effective budgeting and resource allocation rather than the consequences of poor management. Thus, recognizing variances in budgets serves not just as a standalone outcome, but as an important signal for organizations to address underlying issues in their financial management practices.