As the terms are used in the budgeting process, it is possible for a company to be effective at the same time it is inefficient.

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Effectiveness and efficiency refer to different aspects of a company's performance. Effectiveness refers to whether a company is achieving its goals and objectives, while efficiency refers to how well it is using resources (such as time, money, and energy) to achieve those goals. It is possible for a company to be effective (i.e. achieving its goals) but inefficient (i.e. using too many resources to do so), or vice versa. Thus, it is possible for a company to be effective at the same time it is inefficient in the budgeting process or in any other aspect of its operations.

As the Terms Are Used in the Budgeting Process, It