Budgeting for operations and financial results is recommende

Budgeting for operations and financial results is recommended and often necessary for survival because

the Securities and Exchange Commission mandates it.

the federal government provides tax incentives to companies who budget regularly.

the management can monitor results and react in time before unforeseen events cause excessive damage or harm.

lenders require it.

Solution

Option C

Budgeting is a tool used for forecasting the financial position and financial results of an entity. It is future oriented,so the management can compare the actuals with budgeted and take immediate action if required. So the answer is option C