The correct answer is: Authorisation; Performance evaluation; Resource allocation.

In many budget systems, expenditure that is included in the budget is automatically approved as expenditure which may be incurred by the budget holder, without further approval being sought.

Budgets ensure that the organisation sets out in the right direction for the forthcoming period.

Comparison of actual results with the budget provides a basis for performance comparison.

Most organisations work with limited resources. By considering carefully the demands on those resources from each budget centre, an objective of the budgeting process is to ensure that these resources are used in the most effective way.

Although plans to expand may underlie the framework within which an organisation’s budget is set, expansion is not itself an objective of the budgetary planning process. In fact, some organisations may include a reduction in activity in their budgetary plans.