Managerial Accounting
Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 7, Problem 1DQ
To determine

Describe the three major objectives of budgeting.

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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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Managerial Accounting

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