What is the primary purpose of budgeting in management accounting?
Practice Questions
1 question
Q1
What is the primary purpose of budgeting in management accounting?
To increase sales revenue
To control costs and allocate resources
To determine product pricing
To assess employee performance
Budgeting helps in controlling costs and allocating resources effectively, ensuring that the organization operates within its financial means.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the primary purpose of budgeting in management accounting?
Solution: Budgeting helps in controlling costs and allocating resources effectively, ensuring that the organization operates within its financial means.
