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CHAPTER 14 
FUNCTIONAL AND ACTIVITY-BASED 
BUDGETING 
I. Questions 
1. No. Planning and control are different, although related, concepts. 
Planning involves developing objectives and formulating steps to achieve 
those objectives. Control, by contrast, involves the means by which 
management ensures that the objectives set down at the planning stage are 
attained. 
2. Budgets have a dual purpose, for planning and for following up the 
implementation of the plan. The great benefits from budgetin...
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