Question

What is the purpose of providing control by comparisons of actual results against budget plans?

a.

To ignore the reasons for deviation

b.

To avoid remedial action

c.

To investigate the reasons and causes for deviation

d.

To discourage performance appraisal

Answer: (c).To investigate the reasons and causes for deviation Explanation:Providing control by comparisons of actual results against budget plans is done to investigate the reasons and causes for deviation.

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Q. What is the purpose of providing control by comparisons of actual results against budget plans?

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