What is a budget, what is the goals of a budget, and what are the three functions of budgeting, including their chief criticisms

Explanation:

A budget is an accounting tool used to estimate expected outcome; about sales, expenses etc for a certain period of time.

The goals of a budget is to have an overview of expected cost or to even attain certain goals. For example, one may write a budget for building a new house in order to have a realistic goal in mind.

Some three functions of budgeting includes;

1. Performance monitoring: a company may budget it's expenses for an entire year and after the budget period look back towards seeing how well they performed as regards keeping to their budget.

2. Income forecasting: budgeting allows a company to estimate expected income; an information that is used to get investors.

3. Decision making: a good budget serves to enable proper decision making. For example, a sales budget can help company know where to focus their resources.

Two Criticism of budget:

1. It is prone to errors.

2. It considers only financial results; often excluding behaviorial tendencies etc

answer; signaling;