Final answer:
The correct statement regarding budgeting is that it involves planning and tracking expenses.
Step-by-step explanation:
The correct answer is C) It involves planning and tracking expenses.
Budgeting is the process of creating a plan for how to spend and manage money. It helps individuals and organizations allocate their financial resources effectively. Budgeting involves setting financial goals, estimating income, planning expenses, and tracking spending to ensure that the money is being used wisely.
For example, if someone wants to save money for a vacation, they can create a budget by setting a specific amount of money they want to save each month and reducing unnecessary expenses. By tracking their spending and adjusting their budget as needed, they can stay on track and achieve their financial goals.