Which of the Following Is an Example of the Benchmarking

question 18

Multiple Choice

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

• A) Budgeting requires close cooperation between accountants and operational personnel.
• B) Budgeted amounts are compared to actual results.
• C) The budget outlines a specific course of action for the coming period.
• D) A budget demands integrated input from different business units and functions.

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Definitions:

Service Department Costs

Expenses incurred by departments that do not directly produce goods but provide essential support services within a company.

Performance Evaluation

The systematic assessment of an employee's work performance using predetermined criteria to improve and manage performance.

Budgeted Fixed Costs

The projected amount of fixed costs for a certain period, used for planning and budgeting purposes.

Service Department

A service department refers to a division within a company that provides support services to other departments, rather than producing goods.