Which of the Following Is an Example of the Benchmarking

question 101

Multiple Choice

Which of the following is an example of the benchmarking function of a budget?

• A)A budget demands integrated input from different business units and functions.
• B)Budgeting requires close cooperation between accountants and operational personnel.
• C)Budget figures are used to evaluate the performance of managers.
• D)The budget outlines a specific course of action for the coming period.

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Definitions:

Salvage Value

The assessed salvage value of an asset at the close of its lifespan.

Pretax Return

The income earned by a company before taxes are deducted.

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life.

Cash Inflow

The total amount of money being received by a company, often from its main activities such as sales of goods or services.