Budgets are a manager's tool to plan, understand, and control operations.

Question

Quizplus · Accepted Answer

Budgets allow managers to set goals, allocate resources, monitor progress, and make adjustments as necessary to achieve desired outcomes. By having a clear understanding of the financial resources available and the expected costs and revenues associated with different activities, managers can make informed decisions that maximize efficiency and effectiveness. Budgets also provide a framework for evaluating performance, identifying areas for improvement, and ensuring accountability.

Budgets Are a Manager's Tool to Plan, Understand, and Control