Advantages of Budget

Question 1

Budgets_________management’s plans throughout the organization.

Answer 1

Communicate

Question 2

Budgets force managers to_______and_________for the future. In the absence of the necessity to prepare a budget, many managers would spend all of their time dealing with day-to-day emergencies.

Answer 2

think about and plan

Question 3

The budgeting process provides a means of ________to those parts of the organization where they can be used most effectively.

Answer 3

allocating resources

Question 4

The budgeting process can uncover potential ____________before they occur

Answer 4

bottlenecks

Question 5

Budgets______the activities of the entire organization by integrating the plans of its various parts. Budgeting helps to ensure that everyone in the organization is pulling in the same direction.

Answer 5

coordinate

Question 6

Budgets define goals and objectives that can serve as _______ for evaluating subsequent performance.

Answer 6

benchmarks