What is true of budgets?
A)They are voted on and approved by shareholders.
B)They are used in the planning, but not the control process.
C)There is a standard form and structure for budgets.
D)They are used in performance evaluation.

Question

Quizplus · Accepted Answer

Budgets are commonly used in performance evaluation and are compared to actual results to identify areas that may require corrective action. Choices A, B, and C are incorrect because budgets are not voted on or approved by shareholders, they are used in both the planning and control process, and there is no standard form or structure for budgets as they can vary depending on the organization and its needs.

What Is True of Budgets