The authorization function of budgets is especially important for government and not-for-profit (NFP)entities,where budgeted amounts often serve both as approvals of planned activities (or programs)and as:

Question

Quizplus · Accepted Answer

Budgeted amounts in government and NFP entities often serve as ceilings for expenditures, which means that any spending above the budgeted amount requires additional authorization or approval. This ensures that these organizations stay within their financial limits and use their funds responsibly. Choices A, B, C, and E are not accurate as they do not reflect the main purpose of the authorization function of budgets in these types of organizations.

The Authorization Function of Budgets Is Especially Important for Government