A budget serves as much as a control tool as a planning tool because ________.
A) it aids in the coordination and communication among various business functions
B) it helps to evaluate customer needs and feedback
C) it is a benchmark against which actual performance can be compared
D) it helps to make predictions about the future

Question

Quizplus · Accepted Answer

A budget serves as a control tool because it provides a benchmark against which actual performance can be compared. This allows businesses to identify any variances and take corrective action if necessary. While a budget can also aid in planning, coordination, communication, and making predictions, these are not the primary reasons why a budget serves as a control tool.

A Budget Serves as Much as a Control Tool as a Planning