ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Helps to keep track of the money you receive
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Helps to prioritize your spending
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Helps reach short-and long-term financial goals
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All of the above
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Detailed explanation-1: -A budget can help you purchase anything you want. A budget can help you keep track of your money. A budget can help you make plans to reach your financial goals. A budget can help you decide the importance of your expenses.
Detailed explanation-2: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home.
Detailed explanation-3: -Advantages of budgeting and budgetary control Forces management to look ahead, to set out detailed plans for achieving the targets for each department, operation and (ideally) each manager, to anticipate and give the organisation purpose and direction. Promotes coordination and communication.
Detailed explanation-4: -The purpose of budgeting is to provide a financial framework for the decision making process i.e. is the proposed course action something we have planned for or not.
Detailed explanation-5: -Which of the following is a benefit to an organization that implements a budget?-Budgets help managers improve their decisionminus−making processes in an organization.