Which of the following basic economic realities makes budgeting necessary?

Budgeting is essential because resources are limited, and organizations need to allocate them efficiently. Scarcity of resources means that there are not enough resources (such as money, time, materials, or labor) to meet all demands. Budgeting helps organizations prioritize and allocate resources effectively to achieve their goals and objectives. By managing scarce resources, organizations can optimize their performance and make informed decisions12. References:

ASQ Certified Manager of Quality/Organizational Excellence

ASQ Certified Manager of Quality/Organizational Excellence Exam Insert