Worldatwork c8 Exam - Topic 4 Question 105 Discussion

Actual exam question for Worldatwork's c8 exam

Question #: 105
Topic #: 4

[All c8 Questions]

What best describes the primary purpose of budgeting?

ALimiting spending to a fixed percentage of organizational revenue

BMaking choices about spending based on expectations of performance

CIncreasing profitability of the business annually to maximize shareholder/owner value

DComplying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Show Suggested Answer

Suggested Answer: B

by Dorinda at Apr 03, 2026, 05:41 PM

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17 days ago

D sounds relevant too, especially with compliance and record-keeping, but I don’t think that captures the main goal of budgeting itself.

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22 days ago

I feel like C could be a contender since profitability is important, but it seems too narrow for the overall purpose of budgeting.

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28 days ago

I remember a practice question that emphasized budgeting as a tool for controlling costs, which might relate to A, but I'm not entirely sure.

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1 month ago

I think the primary purpose of budgeting is about making choices based on performance expectations, so I’m leaning towards B.

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