An extremely important use of reports of actual results versus budget projections is:
A) Identifying supervisors whose departments have gone substantially over budget.
B) Identifying potentially troublesome areas so that corrective action can be taken.
C) Determining how much can be cut from the budget during the next period.
D) Highlighting areas of potential cost savings.

Question

Quizplus · Accepted Answer

Identifying areas where actual results deviate from budget projections is crucial for taking timely corrective actions to address any issues and ensure financial objectives are met.

An Extremely Important Use of Reports of Actual Results Versus