Which of the following is a primary purpose of a budget plan?

A budget plan primarily serves to establish financial control and accountability within an organization. By creating a budget, an organization outlines its expected income and expenditure, setting boundaries for spending and enabling management to allocate resources effectively. This structured approach helps ensure that financial decisions align with overall goals and that funds are used efficiently.

Establishing financial control means that the organization can monitor actual performance against the budgeted figures, allowing for timely adjustments when there are discrepancies. Accountability is achieved as departments and individuals are held responsible for their budgeted amounts, fostering a culture of financial discipline.

While other options may have their own merits, they do not focus specifically on the core function of a budget plan. For example, providing a historical record of financial activities pertains to past performance rather than the proactive management of resources. Tracking market trends is related to external analysis rather than internal financial governance, and measuring employee productivity is an entirely different management focus that does not directly relate to budget planning.