Why is the budget an essential Tool?
Why is the budget an essential Tool in cost planning?
The budget is an essential cost planning tool because it
1. supplies information and serves as a standard of performance for cost control by the supervisors responsible for cost.
2. Provides an easy method for anticipating profits at an anticipated sales level
3. Helps in forecasting sales, costs, expenses and profits for a period of one year or more in advance.
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