Budgeting is ineffective unless it is tied to strategy and used to manage an organization's overall performance.

Question

Quizplus · Accepted Answer

Budgeting is not just about creating a financial plan, it should also be linked to an organization's goals and objectives. Without this alignment, budgeting becomes a meaningless exercise. Additionally, budgeting should be used to monitor and manage an organization's performance towards achieving its strategic objectives.

Budgeting Is Ineffective Unless It Is Tied to Strategy and Used