Budgets provide managers with quantitative standards against which to measure and compare resource consumption.By pointing out deviations between standard and actual consumption,they become ________.
A)leading indicators
B)environmental concerns
C)bureaucratic measuring sticks
D)clan controls
E)control tools

Question

Quizplus · Accepted Answer

Budgets are control tools as they help managers to monitor and regulate the consumption of resources. They provide a framework for evaluating performance by comparing actual consumption with the set standards. Deviations between standard and actual consumption help managers to identify areas where corrective action needs to be taken.

Budgets Provide Managers with Quantitative Standards Against Which to Measure