Which of the following types of budgeting procedures is the most effective for measuring performance?

Question

Quizplus · Accepted Answer

Flexible budgeting is the most effective for measuring the performance as it adjusts according to the actual level of output or activity. This helps in making accurate comparisons between budgeted and actual performance and provides insights into areas where changes can be made to improve performance. Static budgeting is not effective as it does not adjust for changes in activity levels. Capital budgeting is concerned with long-term investments and does not measure performance on a day-to-day basis. Strategic budgeting is focused on achieving long-term goals and may not be useful for measuring short-term performance.

Which of the Following Types of Budgeting Procedures Is the Most