A company can expect to receive which of the following benefits when it starts its budgeting process? The budget provides managers with a benchmark against which to compare actual results for performance evaluation. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. The budget helps motivate employees to achieve sales growth and cost-reduction goals. All of the above
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A company can expect to receive which of the following benefits when it starts its budgeting process?
- The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
- The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
- The budget helps motivate employees to achieve sales growth and cost-reduction goals.
- All of the above
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