Explore BrainMass

Explore BrainMass

    Use of budgeting

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Is budgeting used primarily for scorekeeping, attention directing, or problem solving? Explain

    © BrainMass Inc. brainmass.com June 4, 2020, 12:17 am ad1c9bdddf
    https://brainmass.com/business/accounting/use-of-budgeting-329047

    Solution Preview

    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 ...

    Solution Summary

    Response guides about budgeting regarding primarily for scorekeeping, attention directing, or problem solving

    $2.19

    ADVERTISEMENT