When budgets are used for control,what is the effect on budgeted amounts?
A)Budgeted amounts from different years are compared.
B)Actual amounts from different years are compared.
C)Budgeted amounts are compared to actual amounts.
D)Actual amounts from the current year are timely.

Question

Quizplus · Accepted Answer

When budgets are used for control, budgeted amounts are compared to actual amounts to see if the budget is being adhered to, and to identify any discrepancies or variances that need to be addressed. This helps to ensure that the organization is meeting its financial goals and staying on track with its financial plans. Comparing budgeted amounts from different years or comparing actual amounts from different years would not necessarily provide a useful benchmark for evaluating current performance or making financial decisions. Similarly, ensuring that actual amounts from the current year are timely is important, but it is not directly related to using budgets for control.

When Budgets Are Used for Control,what Is the Effect on Budgeted