Which of the following is a benefit derived from budgeting?
A) Budgeting focuses management's attention on the future.
B) Budgeting provides coordination of departments.
C) Budgeting provides a basis for evaluating performance.
D) Budgeting provides motivation for managers and employees.
E) All of these.

Question

Quizplus · Accepted Answer

All of the options are benefits derived from budgeting. By anticipating and planning for the future, management is better able to focus on achieving goals. Budgeting provides coordination of departments by allocating resources and setting priorities across various functions. Budgets also provide a clear framework for evaluating performance, as actual results can be compared against the budgeted numbers. Finally, budgets can provide motivation for managers and employees by setting challenging but achievable targets for performance.

Which of the Following Is a Benefit Derived from Budgeting