The budgeting process formalizes and documents managerial plans to clearly communicate objectives to both superiors and subordinates.This budgeting requirement is an example of:
A) performance measurement.
B) planning.
C) budget coordination.
D) taking corrective action.

Question

Quizplus · Accepted Answer

The budgeting process is primarily a planning function, where managers formalize and document their plans for achieving organizational objectives. While budgeting can also involve performance measurement, budget coordination, and taking corrective action, these activities are secondary to the planning function.

The Budgeting Process Formalizes and Documents Managerial Plans to Clearly