Which of the Following Is an Example of the Benchmarking

question 169

Multiple Choice

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

• 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:

Performance Evaluation

The process of assessing the performance of an employee, a department, or an organization against set objectives or criteria.

Profit Centers

Divisions or departments within an organization that are responsible for generating its income.

Management Performance Report

A document that evaluates and summarizes the effectiveness and efficiency of a company's management in achieving corporate objectives.

Controllable Fixed Costs

Fixed costs that management has the authority to increase or decrease, such as advertising expenses or research and development costs.