Unit 16:Introduction to Budgeting: Purpose - Investigation

What is meant by “resource management” in budgeting?

• Hiring more employees

• Allocating limited financial, human, and material resources

• Expanding office space

• Filing taxes

How do budgets help with cost control?

• They increase spending limits

• They establish spending limits and accountability

• They remove all expenses

• They guarantee profit

Revenue forecasting in budgeting helps businesses:

• Predict future income and cash flow

• Eliminate expenses completely

• Reduce employee salaries

• Avoid paying taxes

Why is budgeting important for decision-making?

• It provides data for hiring, investment, and expansion

• It guarantees zero debt

• It predicts stock market trends

• It replaces accountants

What budgeting function ensures businesses don’t run out of money?

• Resource allocation

• Cost control

• Financial stability

• Employee training