The correct answers are:
P = Planning – budgets force managers to think ahead and quantify their plans
R = Responsibility – responsibility for achieving targets set in the budget can be assigned to individuals in the organisation
I = Integration – through the budget-setting process all departments/divisions within a business are integrated and co-ordinated
M = Motivation – budgets well set can become targets which employees are motivated in working towards
E = Evaluation – the budget can be compared against actual performance in order to evaluate departments/divisions at the end of each period
