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:

Optimistic Outlook

A positive mindset where an individual anticipates good outcomes and harbors hope for the future.

Distorted Thought

A cognitive process where perceptions and interpretations of reality are twisted, leading to irrational beliefs or misconceptions.

Structured Environment

An organized and controlled setting designed to support individuals in achieving specific behavioral or therapeutic goals.

Nutritional Needs

This term refers to the essential nutrients required by the body to function correctly, including vitamins, minerals, carbohydrates, proteins, and fats.