Understanding the reasons for any difference between actual results and budgeted amounts is an important aspect of
A)extended value-chain analysis.
B)forecasting for the next accounting period.
C)kaizen management.
D)control.
E)management by perception.

Question

Quizplus · Accepted Answer

Understanding the reasons for any difference between actual results and budgeted amounts helps in analyzing and controlling the performance of the business. This is a crucial aspect of control, which involves monitoring and correcting any deviations from the planned targets. It may also involve taking corrective actions to ensure that the performance is in line with the company's objectives.

Understanding the Reasons for Any Difference Between Actual Results and Budgeted