In which order do the following steps in the budget-setting process actually occur?
i) Co-ordinate the budget
Ii) Identify the limiting factor
Iii) Compare budget and actual performance

Question

In which order do the following steps in the budget-setting process actually occur?
 i) Co-ordinate the budget
Ii) Identify the limiting factor
Iii) Compare budget and actual performance

Quizplus · Accepted Answer

The correct order for setting a budget typically starts with identifying the limiting factor (ii), which determines the maximum output for the budget period. Next, coordinating the budget (i) involves integrating various departmental budgets into a cohesive whole. Finally, comparing budget and actual performance (iii) is done to evaluate how well the budgeted targets were met.

In Which Order Do the Following Steps in the Budget-Setting