The controlling function of budgeting is to direct the use of resources.Select one:True

The statement "The controlling function of budgeting is to direct the use of resources" is True.

Explanation:

Budgeting serves multiple purposes within an organization, one of which is controlling financial resources. By establishing a budget, organizations outline their financial plans and allocate resources in a manner that aligns with their strategic goals. This process involves estimates of revenues and expenses over a specific period, allowing managers to monitor actual performance against budgeted figures.

When the actual results deviate from the budget, management can take corrective actions to address these discrepancies. The budget thus acts as a benchmark, guiding decisions on spending and investment. Furthermore, it ensures that resources are directed toward activities that support the organization’s objectives, enabling effective and efficient use of funds. Hence, budgeting not only facilitates planning but also plays a crucial role in controlling and monitoring resource allocation.