Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 1 - Managerial Accounting: An Overview - Questions - Page 19: 1-4

Answer

Companies prepare a budget in order to show a formal and specific plan to achieve a goal. Budgets not only describe a plan, but they also show a plan's feasibility in quantitative terms.

Work Step by Step

A budget is a detailed plan for the future that is usually expressed in formal quantitative terms.
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