Which of the following is an example of the benchmarking function of the budgeting process?

(A) The budget outlines a specific course of action for the coming period.

(B) Budgeting requires close cooperation between accountants and operational personnel.

(C) A budget demands integrated input from different business units and functions.

(D) Budget numbers are used to evaluate the performance of managers.

Question

Evony

Business

8 September, 16:21

Which of the following is an example of the benchmarking function of the budgeting process?

(A) The budget outlines a specific course of action for the coming period.

(B) Budgeting requires close cooperation between accountants and operational personnel.

(C) A budget demands integrated input from different business units and functions.

(D) Budget numbers are used to evaluate the performance of managers.

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Answers (1)

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Ashlynn Ryan · Answer 1

Answer: Option D

Explanation: In simple words, benchmarking refers to the process in which the company sets the standards of performance based on the industry averages or from the performance of their competitors.

The benchmarking is done for the future reference so that the actual results could be compared with the set standards and the performance of the managers could be evaluated.

Hence from the above we can conclude that the correct option is D.