Chapter 22, Problem 2DQ

To determine

Introduction:

A budget is a tool that charts out a road map for the organization and helps the organization control the income, expenditure and recourses. Budget is the projection of how the company will perform based on the current and expected level of activities. The objective of budgeting is to help the organization reach its goal effectively and efficiently. In short, budget is a plan for the future course of action for the organization.

Requirement 1:

To State:

The ways in which budget benefits the management in their controlling function.