Which of the following is a function of the budget?
A)To control expense/revenue ratio.
B)To minimize expenses.
C)To know who is spending the money.
D)To maximize profits.
E)To torment lower management.

Question

Quizplus · Accepted Answer

The budget serves the function of controlling the expense/revenue ratio by ensuring that expenses do not exceed revenue. This helps the business to achieve financial stability and avoid losses.

Answer: D 
 The budget can also function to maximize profits by allocating resources in a way that yields the highest return on investment. This involves setting goals for revenue growth and cost reduction.

Answer: C 
 Another function of the budget is to know who is spending the money by assigning responsibility for different aspects of the budget to specific individuals or departments. This increases accountability and transparency in the organization.

Answer: B 
 Minimizing expenses is a potential function of the budget, but it is not the only or primary one. The budget should aim to balance cost reduction with other goals such as revenue growth and investment in necessary resources.

Answer: E 
 Tormenting lower management is not a function of the budget and would be counterproductive to its purpose of promoting organizational effectiveness and financial stability.

Which of the Following Is a Function of the Budget