Question

What are the five purposes of budgeting?

Answer 1

The five purposes of budgeting are as follows:

1. Resource allocation
2. Planning
3. Coordination
4. Control
5. Motivation

Also read:

• Budget Deficit
• Difference Between Standard Costing and Budgetary Control
• The Consumers Budget
• Balanced Surplus and Deficit Budget
• Difference Between Capital Expenditure and Revenue Expenditure
• Government Budget and the Economy

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