Budgets:
A) reflect actual performance; not expected performance.
B) cannot be used to evaluate an entire department's performance.
C) tend to falsely signal areas that don't need attention as needing attention.
D) are affected by factors that are sometimes beyond the control of the employees.

Question

Quizplus · Accepted Answer

Budgets are planning tools that reflect expected performance and goals, not actual performance. They can be used to evaluate a department's performance by comparing actual results against budgeted figures. However, budgets are indeed affected by external factors that may be beyond the control of employees, such as economic changes, supply chain issues, or unexpected shifts in market demand.