Question : Assertion: Budgets help in allocating resources in a planned manner.
Reason: Budgets are related to resource allocation.
Option 1:
Both assertion and reason are correct, and the reason is a correct explanation.
Option 2: Both assertion and reason are correct, and the reason is not correct explanation.
Option 3: Assertion is false, but the reason is correct.
Option 4: Assertion is correct, but the reason is false.
Correct Answer:
Solution : The correct answer is: (a) Both assertion and reason are correct, and the reason is a correct explanation.
The assertion that budgets help in allocating resources in a planned manner is correct. Budgets are financial plans that outline the allocation of resources, including funds, in a systematic and planned way to achieve organizational goals.
The reason stating that budgets are related to resource allocation is a correct explanation. Budgets are specifically designed to address resource allocation, including funds, manpower, and other resources, in accordance with the organization's plans and objectives.
Therefore, both the assertion and the reason are correct, and the reason provides a correct explanation for the assertion.
Question : Assertion: Strategy involves the allocation of resources to achieve organizational goals.
Reason: Strategy does not involve resource allocation.
Question : Assertion: Budgeting is a continuous process of resource allocation.
Reason: Budgets are prepared only once at the beginning of the fiscal year.
Question : Assertion: Budgets help in evaluating the performance of different households.
Reason: Budgets do not provide any information on departmental performance.
Question : Assertion: Budgeting is a part of the planning process.
Reason: Budgets are prepared after the implementation phase of a plan.
Question : Assertion: Budgeting involves forecasting future financial performance.
Reason: Budgeting is limited to the allocation of resources.
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