Identifying Key Advantages of Budgetary Control

Steps:

• Recall standard advantages: 1) Coordinates activities, 2) Detects variances early, 3) Improves resource allocation, 4) Enhances cost control.
• Eliminate non-advantages: Option 2 (early variance detection) is more a feature than core benefit; option 1 (coordination) is indirect.
• Confirm core benefits: Focus on 3 (resource allocation) and 4 (cost control) as primary advantages per management accounting principles.
• Match to choices: D selects only 3 and 4, aligning with essential benefits.

Why D is correct:

• Budgetary control primarily excels in resource allocation (3) and cost control (4), as defined in standard accounting texts like CIMA guidelines.

Why the others are wrong:

• A includes 1 and 2, which are secondary or not purely advantageous.
• B includes 1, overemphasizing coordination over core benefits.
• C includes 2, which is operational rather than a strategic advantage.

Not enough information on exact statements for 1-4, but D fits typical advantages.

Final answer: D