Management should compare its budget to ________ performance every month in order to determine if the company is performing as expected.
A) expected
B) planned
C) actual
D) ideal
E) competitors'

Question

Quizplus · Accepted Answer

Management should compare its budget to actual performance every month in order to determine if the company is performing as expected. This will help identify any disparities between the planned and actual expenses, which can then be addressed in a timely manner. Comparing the budget to expected or planned performance does not provide an accurate picture of the company's financial health, as it only reflects what was originally estimated. Comparing to ideal performance is not practical, as there is no set definition of "ideal" in the business world. Comparing to competitors' performance may provide valuable insights, but it is not directly related to the company's own budget and financial planning.

Management Should Compare Its Budget to ________ Performance Every Month