The process of planning future business actions and expressing them as a formal plan is called:
A) Budgeting.
B) Cost accounting.
C) Managerial accounting.
D) Variance analysis.
E) Standard cost analysis.

Question

Quizplus · Accepted Answer

Budgeting involves not only predicting future business actions but also formulating them in a formal plan. It is an important tool for effective financial management and helps companies to allocate their resources strategically. Cost accounting, managerial accounting, variance analysis, and standard cost analysis are useful techniques, but they focus on different aspects/functions of business and may not necessarily involve future planning.

The Process of Planning Future Business Actions and Expressing Them