Question

Observe the image and identify the utility of budgeting.

Options

• Prevent “buck-passing” and create a sense of responsibility

• Tell people what is expected

• It permits participation of employees at all levels

• Focusing attention on deviations from budgeted targets

Answer 1

Prevent “buck-passing” and create a sense of responsibility

Explanation:

Budgeting assigns clear responsibilities and measurable targets to managers, reducing “buck‑passing” and building accountability. By fixing departmental budgets and standards during planning and performance evaluation, it creates a definite sense of responsibility and prevents blame‑shifting.