Respuesta :
Allocation is the use of specific resources throughout the firm based on a financial plan indicating management's expectations and for making such allocation a company uses the budget as the basis for making decisions.
What is the meaning of the term "budget"?
An economic plan for a described period, regularly one year is referred to as a budget. It might include deliberate income volumes and revenues, aid quantities, expenses and expenses, assets, liabilities, and cash flows.
Budgets are mainly prepared by a company to keep a track of the budgetary goals to be achieved by the organization and take preventive action if there are any variances.
Hence, When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using the budget as the basis for making decisions.
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