If an actual discretionary cost is exactly equal to the budgeted level of that cost,which of the following statements is true?
A)Funds were appropriately spent.
B)The discretionary activity was efficient.
C)The discretionary activity was effective.
D)None of the above.

Question

Quizplus · Accepted Answer

Just because an actual discretionary cost matches the budgeted level does not necessarily mean funds were spent appropriately, nor does it indicate that the activity was efficient or effective. It simply means the spending matched the budgeted amount. Efficiency and effectiveness are determined by outcomes and how well resources are used, not just by adherence to budget.

If an Actual Discretionary Cost Is Exactly Equal to the Budgeted