Budgeted performance goals generally provide a better basis for evaluating actual performance than past performance.

Question

Quizplus · Accepted Answer

Budgeted performance goals are set based on the organization's strategic plans and objectives. They reflect a desired set of outcomes in terms of performance, efficiency, and effectiveness. When actual performance is compared to the budgeted performance goals, it provides a better basis for evaluating actual performance because it helps to identify the gaps between what was planned and what actually happened. Past performance may be skewed by factors that are no longer relevant or by external factors that were not foreseen at the time.

Budgeted Performance Goals Generally Provide a Better Basis for Evaluating