Budgeting software is often designed as a component of the company's Enterprise Resource Planning (ERP) system.

a. true

b. false

Answer: True

Explanation: Enterprise Resource Planning refers to a process management software which enables an institution to get an interconnected application process to run the business and simplify many technologies.

On the other hand, budgeting software refers to the software which are used by businesses to effectively ascertain and maintain their budget. Thus, budgeting process is also a component of enterprise resource planning as it also interconnects and impacts number of activities and implies activities for the organisation through a digital medium.

Generally, large companies manage their activities by using custom made budgeting software that can be operated easily through their overall enterprise resource planning system.