The Purpose of Budgeting Is To

question 43

Multiple Choice

The purpose of budgeting is to:

• A)Get a forecast of resource usage of the next financial year only.
• B)Facilitate organisational planning and control.
• C)Request more funding.
• D)All of the options are correct.

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Definitions:

Economic Principle

Fundamental concepts that underpin the study and practice of economics, such as supply and demand or the cost-benefit analysis.

Productive Capacity

The maximum output a firm or economy can produce with its current level of resources and technology.

Efficient

The optimal use of resources to achieve the best possible outcome or output with minimal waste or effort.

Reallocating Resources

The process of distributing resources, such as capital and labor, in a different manner to increase efficiency or achieve a specific objective.