It is a plan which quantifies future facts and figures. Identify the plan.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Budget.
A budget is a statement of expected results expressed in numerical terms. It is a plan which quantifies future facts and figures. Since budget represents all items in numbers, it becomes easier to compare actual figures with expected figures and take corrective action subsequently. Thus, a budget is also a control device from which deviations can be taken care of. But making a budget involves forecasting, therefore, it clearly comes under planning. It is a fundamental planning instrument in many organisations.