Question
As Budgets serve three basic purposes. 1) Planning : It forces people to think about what should happen in their business and develop an articulated
As Budgets serve three basic purposes.
1)Planning: It forces people to think about what should happen in their business and develop an articulated strategy.
2)Control: It tells employees what they can and cannot do.It restrains their choices and compels them to obey the plan.
3)Evaluation: It provides a benchmark.Actual results can be compared to the budget to see if the company succeeded or failed.
The question:
=> Briefly explain why a budget must be used as an evaluation tool in order for it to be effective as a control device.
My professor's really strict about word count (prefer short answer) so please provide the suggestion with just the necessary word
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