A budget may be used as an evaluation instrument, where managers compare actual figures during the year with budgeted figures for the same time period.

Question

Quizplus · Accepted Answer

This statement is correct. A budget can be used as a tool for evaluating the performance of a business by comparing actual figures with budgeted figures. This helps managers to identify areas where there might be variances or discrepancies and take corrective actions accordingly.

A Budget May Be Used as an Evaluation Instrument, Where