How should financial budgets be thought of?

Question

Quizplus · Accepted Answer

Financial budgets should be thought of as a method for obtaining the most productive and profitable use of an organization's resources. It helps to allocate resources in a way that will maximize their impact on achieving the organization's goals and objectives. While it may involve limiting expenditures or forecasting future profits, these are just elements of the larger goal of achieving the best possible use of resources. Financial budgets also help to track progress and make adjustments along the way to ensure that the organization stays on course.

How Should Financial Budgets Be Thought Of