What is NOT a purpose of budgeting?

The selected answer, which identifies "Elimination" as not being a purpose of budgeting, is accurate because budgeting serves specific functions that contribute to effective financial management within an organization.

Budgeting is primarily a tool for planning, allowing organizations to forecast future income and expenses based on historical data and anticipated changes in operations. It facilitates the establishment of financial goals and helps in allocating resources efficiently to meet those targets.

Responsibility is another key aspect of budgeting. It assigns accountability to different departments or managers for their respective budget areas. This ensures that there is a clear understanding of who is responsible for managing costs and revenues, and it supports performance evaluation against set budgets.

Integration refers to the coordination of various departments and their budgets to ensure that all parts of the organization work together towards common financial goals. This collaboration helps in aligning departmental objectives with the overall strategic direction of the organization.

In contrast, elimination is not a recognized purpose of budgeting. Budgeting does not aim to remove or eliminate components of financial management; rather, it seeks to organize and control financial resources effectively to support operations and strategy. Thus, understanding the established purposes of budgeting highlights why elimination does not fit within this framework.