Which of the following is an example of the benchmarking function of a budget?
A) Budgeting requires close cooperation between accountants and operational personnel.
B) Budgeted amounts are compared to actual results.
C) The budget outlines a specific course of action for the coming period.
D) A budget demands integrated input from different business units and functions.

Question

Quizplus · Accepted Answer

The benchmarking function of a budget involves comparing the budgeted amounts to actual results in order to identify areas of improvement and adjust future budgets accordingly. Option A describes the coordination function of a budget, option C describes the planning function, and option D describes the integration function.

Which of the Following Is an Example of the Benchmarking