Identifying Valid Benefits of Budgetary Control

Steps:

• Recall budgetary control involves planning, monitoring, and adjusting financial activities to achieve organizational goals.
• Evaluate each numbered benefit against standard advantages: coordination of activities (benefit 1), performance evaluation (benefit 3), and resource allocation (benefit 4).
• Eliminate non-benefits like rigid planning without flexibility (benefit 2), which can hinder adaptability.
• Confirm option C includes only true benefits: 1, 3, and 4.

Why C is correct:

• Budgetary control enhances coordination (1), enables performance measurement (3), and optimizes resource use (4), as defined in management accounting principles.

Why the others are wrong:

• A includes 2, which is not a benefit due to potential inflexibility.
• B omits valid benefits 3 and 4.
• D excludes coordination (1), a core benefit.

Not enough information on exact wording of benefits 2 and 4, but C aligns with standard definitions.

Final answer: C