Which of the following is an example of the benchmarking function of the budgeting process?
A) A budget demands integrated input from different business units and functions.
B) Budgeting requires close cooperation between accountants and operational personnel.
C) Budget figures are used to evaluate the performance of managers.
D) The budget outlines a specific course of action for the coming period.

Question

Quizplus · Accepted Answer

The benchmarking function of the budgeting process involves using budget figures to evaluate the performance of managers, departments, or business units. This helps identify areas that need improvement and sets a benchmark for future budgeting cycles. Choices A, B, and D are not directly related to the benchmarking function of budgeting.

Which of the Following Is an Example of the Benchmarking