What is the function of quantitative analysis in budget preparation?

The function of quantitative analysis in budget preparation is to support decision-making with numerical data. This approach allows budget planners to evaluate various financial scenarios, identify trends, and make informed predictions based on past performance and current financial conditions. By using quantitative methods, planners can make comparisons between different budget items, assess the impact of financial decisions, and allocate resources more efficiently.

Using numerical data makes it possible to set specific, measurable goals as well, thereby enhancing accountability and allowing stakeholders to understand the financial implications of their choices. This supportive role of quantitative analysis is critical for effective budgeting, as it provides a clear foundation upon which strategies and priorities can be built.