The organizational process of budgeting performs several important functions. Which is true?
A)Assigns decision rights
B)Shares knowledge
C)Forces planning
D)Measures performance
E)All of the above

Question

Quizplus · Accepted Answer

The organizational process of budgeting assigns decision rights by identifying who is responsible for making decisions on spending and investing money. It shares knowledge by ensuring that all relevant individuals and departments are involved in the budgeting process and have a clear understanding of the organization's financial goals and constraints. Budgeting forces planning by requiring organizations to set goals and develop strategies for achieving them, and it measures performance by providing a framework for evaluating actual results against budgeted expectations. Therefore, all of the options mentioned are true functions of the organizational process of budgeting.

The Organizational Process of Budgeting Performs Several Important Functions