Evaluating a functional manager's performance relative to budgets can be an effective control when
A) the process used in developing budgets is open and participative.
B) the process reflects the economic best-case scenario developed by the functional manager.
C) the process reflects the economic worst-case scenario developed by the functional manager.
D) the process relies solely on quantitative criteria to evaluate the functional manager's performance.

Question

Quizplus · Accepted Answer

When the process used in developing budgets is open and participative, the functional manager is more likely to have accurate inputs and buy-in from their team, making evaluation of their performance relative to budgets more effective. Options B and C reflect unrealistic scenarios, and option D assumes that only quantitative criteria are used to evaluate performance, which is not always the case.

Evaluating a Functional Manager's Performance Relative to Budgets Can Be