Answer (D) is correct . A budget is a realistic plan for the future expressed in quantitative terms. It is a planning tool that establishes goals and permits a company to anticipate problems and to plan for decisions. A budget can be a motivator, especially if it sets reasonable standards, has some flexibility, and was prepared with the participation of those affected. A budget is a communication tool because it informs employees about the goals the company is striving to attain and thus enhances goal congruence. A budget is also a means of coordinating the company’s various activities. The company’s overall budget consists of many smaller budgets.
Answer (A) is incorrect because Motivating and communicating are also performed by a budget.
Answer (B) is incorrect because Planning and communicating are also performed by a budget.
Answer (C) is incorrect because Planning and motivating are also performed by a budget.
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