In budget execution, undelivered orders indicate goods or services that are:

• A. They indicate goods/services ordered but not yet received; used to manage continuing obligations.
• B. They are orders canceled; used to reallocate funds.
• C. They are future projected orders; used to estimate revenue.
• D. They are finished orders; used to close contracts.

Answer: (A)

Undelivered orders are commitments for goods or services that have been ordered and funded but have not yet been received or completed. They show continuing obligations—the government has set aside budget authority to pay for those orders once the items arrive or the work is performed. As deliveries occur, undelivered orders decrease and actual outlays increase; if orders are canceled, they drop accordingly. This helps budget managers track outstanding commitments and ensure resources are available to satisfy future obligations. The other options don’t fit because canceled orders would remove the obligation, future projected orders are not yet funded commitments, and finished orders would have already been delivered and closed.