Question

Observe the image and identify the utility of budget.

Options

• Budgets are an important tool of managerial control

• Inflows and outflows of cash over a future time period

• Exercising control over cost and liquidity of the firm

• Planning for financing of those requirement

Answer 1

Budgets are an important tool of managerial control

Explanation:

Budgets are an important tool of managerial control because they set standards, enable budgetary control, highlight deviations, and help evaluate performance by promoting planning, responsibility, coordination, and effective control across the firm.