Budgeted performance goals generally do not provide a better basis for evaluating actual results than do a simple comparison with past performance.

Question

Quizplus · Accepted Answer

Budgeted performance goals provide a specific target for the organization to strive towards and can provide a clearer understanding of whether actual results are meeting expectations or falling short. Simply comparing actual results to past performance does not take into account changes in the business environment, goals, or strategies.

Budgeted Performance Goals Generally Do Not Provide a Better Basis