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 numbers 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 numbers to evaluate the performance of managers in comparison to established benchmarks or targets. Choices A, B, and D relate to other functions of the budgeting process such as coordination, collaboration, and planning.

Which of the Following Is an Example of the Benchmarking