Is budgeting used primarily for scorekeeping, attention directing, or problem solving? Explain
Budget is a comprehensive financial plan of allocation of financial resources. Budgeting has got multiple purposes. Infact it can be used for all of the above that is scorekeeping, attention directing and problem solving. For example Flexible budget can be used for problem solving as it helps in preparing budget under different scenarios there by indicating the action to be taken in each scenario. Flexible is a budget which is adjusted for the actual level of output, revenue, or cost driver. (Pearsoned, 2009) Hence Flexible budgets matches or relates the estimated expenses to estimated revenue. "For example if a business greatly exceeded the sales goal, it is reasonable to expect costs to also ...
Response guides about budgeting regarding primarily for scorekeeping, attention directing, or problem solving