Which is true of budgets?
A) They are voted on and approved by stockholders.
B) They are used in the planning but not in 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 used in performance evaluation as a tool to compare actual results to planned or budgeted results. This helps identify areas of success and areas needing improvement. Therefore, D is the correct choice. A is incorrect because budgets are approved by management, not stockholders. B is incorrect because budgets are used in both planning and control processes. C is incorrect because the form and structure of budgets can vary greatly depending on the organization and type of budget.

Which Is True of Budgets