Budgets provide financial objectives to achieve. If actual operations results do not meet the budgeted objectives, it may indicate inefficiency or ineffectiveness of the operations. Therefore, the managers should pay attention to the business activities which fail to meet the budgeted goals and be accountable for significant deviations.

Which of the following is best explained by the above statements?

Budgetary control

Zero-based budgeting

Capital budgeting

Operating budgets