Question

The major objectives of any budget system are to: (CIA adapted)

A) define responsibility centers, provide a framework for performance evaluation, and promote communication and coordination among organization segments.
B) define responsibility centers, facilitate the fixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates.
C) foster the planning of operations, provide a framework for performance evaluation, and promote communication and coordination among organization segments.
D) foster the planning of operations, facilitate the fixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates.

Answer 1

Answer: Option (C)

Step-by-step explanation:

Budget system are referred to as or known as the plan under which an individual balance their expenditures with income in order to ensure the solvency is strictly maintained.

The few main objectives of a budget system are as follow:

a) Making budgets in order to plan ahead

b) The efficient allocation of the resources

c) Help with the goals and the business coordination

d) Helps in reviewing the outcome and evaluation of the performance .