ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tools to determine taxation levels
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to address the environment of the global economic outlook and domestic issues
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instrument for planning and management of resources
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to assist government in calculation of cost and profit
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Detailed explanation-1: -The budget is a management instrument used by any entity, financially ensuring the dimension of the objectives, revenues, expenses and results at the management centers level and finally evaluating the economic efficiency through comparing the results with those budgeted for.
Detailed explanation-2: -Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses. Using a budget can help you make more informed financial decisions.
Detailed explanation-3: -As such, the budget is a product of the planning process. The budget also provides an important tool for the control and evaluation of sources and the uses of resources.
Detailed explanation-4: -Budgeting ensures you’re not spending more than you’re making, allowing you to plan for short-and long-term expenses. It’s an easy, helpful way for people with all types of income and expenses to keep their finances in order.
Detailed explanation-5: -The budget is a central policy document of government, showing how it will prioritise and achieve its annual and multi-annual objectives. Apart from financing new and existing programmes, the budget is the primary instrument for implementing fiscal policy, and thereby influencing the economy as a whole.