Budgets provide the basis for a continuous evaluation and comparison of what was planned with what actually happened.

Question

Quizplus · Accepted Answer

Budgets are used for monitoring and evaluation purposes. By comparing actual results with planned budgets, managers can identify variances and take corrective actions to ensure that objectives are achieved. Budgets can also be used to evaluate performance and make informed decisions about future resource allocation. Therefore, the statement is true.

Budgets Provide the Basis for a Continuous Evaluation and Comparison