Question

Which of the following benefits could an organization reasonably expect from an effective budget program? Select one: a. Better control of the organization's costs. b. Better coordination of an organization's activities. c. Better communication of the organization's objectives. d. All of the above.

Answer 1

Answer: d. All of the above.

Explanation: Budgeting is simply the activity of constructing a budget which in turn is defined as any amount of money or resources earmarked for a particular institution, activity or time-frame. An effective budget program is quite significant to both planning and controlling processes and is employed by managers and executives to plan, monitor and control various activities at every level of an organization or business creating better and tighter controls on an organization's costs, activities and communication.