When discussing the roles of budgets,a control role includes:
A)identifying organizational objectives and short-term goals.
B)developing long-term strategies and short-term plans.
C)measuring and assessing performance against budgeted amounts.
D)developing the master budget.

Question

Quizplus · Accepted Answer

The control role of budgets involves measuring and assessing performance against budgeted amounts to identify whether actual results are in line with planned results. This helps to identify areas where corrective action may be necessary, thus allowing for better control over organizational resources. Choices A, B, and D are more related to the planning role of budgets.

When Discussing the Roles of Budgets,a Control Role Includes