How should financial budgets be thought of?
A) A tool for limiting expenditures.
B) A method for obtaining the most productive and profitable use of an organization's resources.
C) A method for rationing the profits from the past year.
D) A method for determining who should receive the largest pay raise.
E) A tool for forecasting future profits

Question

Quizplus · Accepted Answer

Financial budgets should be thought of as a method for obtaining the most productive and profitable use of an organization's resources. Budgeting helps organizations allocate their resources efficiently and effectively, ensuring that they are working towards their goals and objectives. It helps organizations to identify needs and priorities, set goals and targets, and monitor progress towards achieving them. Additionally, it helps organizations to identify areas where cost savings can be made, which can ultimately lead to increased profitability.

How Should Financial Budgets Be Thought Of