Question

Budget are used to verify the performance of managers and to motivate them.

1. True

2. False

Answer 1

True

Because budget is the key tool in company to evaluate the performance of managers and employees.  

A companies set the many goals in budget not only evaluation of performance and also estimating the financial statements like revenue and expenses.

Budget is very useful to achieve the targeted goals , it's provide the financial , physical and other resources including human resource to achieve the goal.

Manager use the budget tool for future plans in organization. Manager decision making and effective use of finance and resources impact on his overall performance. Company or organisation reward and motivates him for his good performance.