Why Are Budgets Useful in the Planning Process

question 177

Multiple Choice

Why are budgets useful in the planning process?

• A) They provide management with information about the company's past performance.
• B) They help communicate goals and provide a basis for evaluation.
• C) They guarantee the company will be profitable if it meets its objectives.
• D) They enable the budget committee to earn their paycheck.

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Definitions:

Analyze

To examine something methodically and in detail, typically for purposes of explanation and interpretation.

Culture

The cumulative deposit of knowledge, beliefs, norms, values, and artifacts that characterize human societies and guide both collective and individual behaviors.

Common Culture

Shared beliefs, practices, norms, values, and symbols among a group of people that foster a sense of identity and unity.

Postmodernism

Is characterized by an eclectic mixing of cultural elements and the erosion of consensus.