Financial and Managerial Accounting
15th Edition
ISBN: 9780357297162
Author: Carl S. Warren; Jefferson P. Jones; William B. Tayler, Ph.D., CMA
Publisher: Cengage Learning US
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Question
Chapter 22, Problem 1DQ
To determine
Describe the three major objectives of budgeting.
Expert Solution & Answer
Explanation of Solution
Budgeting:
Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It also helps to satisfy everyday activities.
The three major objectives of budgeting are described below:
- • To set the goals for the future actions.
- • To implement the strategies to accomplish the preset goals.
- • To compare the actual results with the budgeted results periodically.
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