Which aspect must be controlled during budgeting in financial management?

In financial management, controlling costs and expenditures is crucial during budgeting as it directly impacts the overall financial health of an organization. By closely monitoring these financial elements, managers can ensure that they are operating within their means and prevent overspending. Effective budgeting allows organizations to allocate resources efficiently, plan for future expenses, and strategize accordingly for sustainable growth.

Additionally, controlling costs helps assist in achieving financial goals, including profitability and cost-effectiveness. It allows businesses to respond to financial challenges and make informed decisions about future investments or cutbacks, keeping the organization's bottom line in mind. This focus on costs and expenditures lays the foundation for effective financial planning and performance monitoring, which is essential for the stability and growth of any organization.