Which of the following processes is involved in budgeting?
A) Assessing the utilization rate of assets
B) Identifying the industry standards of stock returns
C) Periodically comparing actual results with the goals
D) Dismissing all managers who fail to achieve operational goals specified in the budget

Question

Quizplus · Accepted Answer

Budgeting involves periodically comparing actual results with the goals set in the budget to ensure that the organization is staying on track and making adjustments as needed. Assessing the utilization rate of assets and identifying industry standards of stock returns may be part of the budgeting process but are not the main focus. Dismissing managers who fail to achieve operational goals in the budget is not necessarily a process involved in budgeting but rather a consequence for poor performance.

Which of the Following Processes Is Involved in Budgeting