When budgets are used for control,
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)None of these is correct.

Question

Quizplus · Accepted Answer

When budgets are used for control, the budgeted amounts are compared to actual amounts to identify any deviations or variances that need to be addressed. This helps in controlling the expenses and ensuring that they stay within the budgeted amount. Comparing budgeted amounts from different years or actual amounts from different years may not be relevant to the current budget cycle and can provide misleading information.

When Budgets Are Used for Control