Explain the following statement: A budget has both a planning function and a control function - NSC Agricultural Management Practices - Question 4 - 2022 - Paper 1

A budget serves two primary functions in agricultural management: planning and control. The planning function involves forecasting income and expenses, which helps farmers allocate resources efficiently towards achieving their operational goals. Conversely, the control function allows for monitoring the actual performance against the planned budget. This helps ensure that financial decisions align with the farm's objectives, enabling timely adjustments when discrepancies arise.