Question

How does a budgetary control system contribute to successful business performance and profitability?

a.

By disregarding budget limits

b.

By avoiding the comparison of actual results with budget standards

c.

By fixing responsibility for failure to reach targets

d.

By establishing budgets with budget limits on various parameters

Answer: (d).By establishing budgets with budget limits on various parameters Explanation:A budgetary control system contributes to successful business performance by establishing budgets with budget limits on various parameters.

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Q. How does a budgetary control system contribute to successful business performance and profitability?

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