A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent. This is an example of ________
A) using a budget for planning
B) using data to confirm a budget
C) justifying expenses with a budget
D) using a budget for monitoring and controlling
Answer: D
Explanation: A budget can be used as a planning tool or as a monitoring and controlling tool. In this example, actual expenses are compared to the amount reserved for expenses in the budget and a discrepancy is found. This is an example of using a budget to monitor and control business operations.
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