In budgeting, when realities change, old assumptions and their benchmarks
A) are never adjusted, since the budget was created based on these assumptions.
B) must be adjusted to reflect better information, so that actual performance is more on target.
C) can be changed to reflect better information, but the changes are not required.
D) may or may not be changed, based on the discretion of management.

Question

Quizplus · Accepted Answer

In budgeting, when realities change, old assumptions and their benchmarks must be adjusted to reflect better information, so that actual performance is more on target.

In Budgeting, When Realities Change, Old Assumptions and Their Benchmarks