Question : Statement 1: Budgeting is a continuous process.
Statement 2: Budgets help in controlling staffing activities.
Option 1: Both statements are correct.
Option 2: Only statement 1 is correct.
Option 3: Only statement 2 is correct.
Option 4: Neither statement 1 nor statement 2 is correct.
Correct Answer: Both statements are correct.
Solution : The correct answer is (a) Both statements are correct.
Statement 1 is accurate. Budgeting is an ongoing and iterative process that involves planning, monitoring, and adjusting financial activities over time. Continuous budgeting allows organizations to adapt to changes and make informed decisions based on their financial goals and circumstances.
Statement 2 is also correct. Budgets typically include specific allocations for various expenses, including staffing costs. By setting limits and guidelines for staffing expenses, budgets play a crucial role in controlling and managing an organization's workforce-related activities.
Therefore, both statements are correct.
Statement 2: Budgets help in controlling financial activities.
Question : Statement 1: Budgeting is a frequent process.
Question : Statement 1: A budget is a tertiary plan.
Statement 2: Budgeting helps in controlling financial activities.
Question : Statement 1: A budget is a financial plan.
Statement 2: Budgeting helps in resource allocation.
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