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Managers are required to think about future business activities.
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Match the given statement to appropriate budgeting objective.
Answer to Problem 1TI
Planning
Explanation of Solution
Budget is a financial plan prepared and used by management over a specific future time period. Budgets help the managers in coordinating business activities with company’s goals and strategies.
Main objectives of budgeting are helping the managers to plan, promote coordination and communication, and provide benchmark for making evaluation of actual performance.
Out of the four main objectives, planning helps the managers of company to plan for the future happenings of the company. All decisions are made on the basis of formal plan.
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