A household that cuts back on supermarket spending after going overbudget on its food budget is using the budget as a(n) ________
A) planning tool
B) controlling tool
C) organizing tool
D) leading tool
Answer: B
Explanation: In this case, the budget is being used as a controlling tool because the household is adjusting its consumption as a result of exceeding its budget in a particular area. The budget is providing a check on spending. This makes "controlling tool" the correct response. When the budget was first formulated, it was being used as a planning tool. Later, when the budget was used to guide spending, it was being used as a leadership tool. When the budget helped determine who was going to buy what and when, it was being used as an organizing tool.
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