The main purpose of a budget is to:
A) develop financial goals.
B) calculate discounted cash flow.
C) give feedback to the plan.
D) monitor and control financial outcomes.
E) revise depreciation schedule.

Question

Quizplus · Accepted Answer

The main purpose of a budget is to monitor and control financial outcomes. A budget helps in keeping track of income and expenses, thus helping in managing finances effectively. It enables to plan the spending in advance and also keep a check on the spending throughout the period. By comparing the budgeted expenses with the actual incurred expenses, adjustments can be made and financial outcomes can be controlled.

The Main Purpose of a Budget Is To