Redoing the budget to actual output is most useful:
A) for planning purposes.
B) to calculate profitability accurately.
C) as a tool to help evaluate performance.
D) when actual output equals budgeted output.

Question

Quizplus · Accepted Answer

Redoing the budget to actual output allows for a comparison between the planned budget and the actual results, which helps to evaluate the performance of the organization. This can help identify areas where improvements can be made and where resources can be better allocated. While it may also be useful for planning purposes and calculating profitability, the primary benefit is in performance evaluation. Actual output does not necessarily have to equal budgeted output for this process to be useful.

Redoing the Budget to Actual Output Is Most Useful