Budgets assign resources and the responsibility to use them wisely to managers who are held accountable for their results.

Question

Quizplus · Accepted Answer

This statement accurately describes one of the primary purposes of budgeting in organizational management. Budgets are used to allocate resources, establish targets, and monitor performance, and managers are typically responsible for managing and making strategic decisions about how to use the resources allocated to them. They are also held accountable for achieving the desired outcomes outlined in the budget, such as meeting revenue and expense targets, improving operational efficiency, or achieving specific performance metrics. This accountability can help drive performance and ensure that resources are used effectively and efficiently.

Budgets Assign Resources and the Responsibility to Use Them Wisely