What is the goal for a budget?

• A. To Achieve a Surplus
• B. To Maximize Profit
• C. To Break Even
• D. To Cut Costs

Answer: (C)

Budgeting centers on planning how funds will be spent to meet an organization’s needs within the money available. The goal is to break even—the point at which estimated revenues cover all planned expenses. This keeps the operation solvent and ready for ongoing activity without running deficits. A surplus can occur if revenues exceed expenses, but it isn’t the default objective for many budgets, especially in non-profit or public-sector settings where the aim is steady service rather than profit. Cutting costs is a tactic to help balance the budget, not the ultimate aim itself. So, breaking even is the best answer.