Which statement is true about the availability control process?

The statement that the availability control process checks fund availability before costs are incurred is fundamental to its purpose in financial management. This process ensures that sufficient funds are available to cover any projected expenses before they are actually authorized or incurred. It acts as a safeguard to prevent overspending and helps maintain budgetary discipline by ensuring that financial commitments are matched with available resources.

This preemptive measure is crucial for effective budgetary control, as it allows organizations to manage their financial resources proactively, avoiding potential deficits and ensuring compliance with financial regulations. By confirming fund availability in advance, the process plays a key role in strategic planning and operational effectiveness within an organization.