Budgeting is the process of evaluating the results of business operations against a plan and then making adjustments to that plan.

Question

Quizplus · Accepted Answer

Budgeting is the process of creating a plan to spend your money, forecasting future income and expenses, not evaluating the results of business operations against a plan. The evaluation and adjustment of plans based on actual results is more accurately described as variance analysis or budget review.

Budgeting Is the Process of Evaluating the Results of Business