Budgets used for internal planning purposes and performance evaluation should be developed on the basis of
A)responsibility accounting.
B)generally accepted accounting principles.
C)financial accounting standards.
D)managerial accounting standards.

Question

Quizplus · Accepted Answer

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of responsibility accounting, which involves assigning responsibility for costs and revenues to specific individuals or departments. This allows for more accurate tracking of performance and facilitates decision-making based on financial data. Generally accepted accounting principles and financial accounting standards are more relevant for external financial reporting, while managerial accounting standards are focused on providing information for internal decision-making.

Budgets Used for Internal Planning Purposes and Performance Evaluation Should