CIMA BA2 · Chapter 6 · Question 2 of 13
Which of the following is NOT a purpose of budgeting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To guarantee that actual results will equal planned results
Explanation
Budgets help plan, coordinate, communicate, motivate, authorise spending and control performance. They cannot guarantee that actual outcomes will match the plan; differences are investigated through variance analysis.
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