What document is important for controlling an organization's costs?

The purchasing budget is essential for controlling an organization's costs because it serves as a financial plan that outlines expected expenditures on materials, goods, and services needed for operations over a specific period. By establishing a clear budget, an organization can allocate resources effectively, monitor spending, and ensure that costs align with overall financial goals. It helps in identifying variances between planned and actual spending, allowing for timely interventions to manage and control expenses.

In contrast, a market analysis report primarily provides insights into market trends, competition, and consumer behavior, which, while useful for strategic planning, does not directly affect cost control. The annual financial statement summarizes an organization's financial performance over the year, but it is retrospective and not a tool for proactive cost management. Similarly, a sales forecast estimates future sales volume and revenue, but it does not address the specific costs of running the business, thus making the purchasing budget the most relevant document for controlling costs.