Which of the following is a benefit derived from budgeting?

A) Budgeting focuses management's attention on past performance.
B) Budgeting avoids needing industry and economic factors in decision making.
C) Budgeting provides a basis for evaluating performance.
D) Budgeting avoids the need for incentives to improve employee performance.
E) Budgeting eliminates the need for coordination across departments.

Question

Karimah Rembert · Accepted Answer

Final Answer : C, Explanation :  Budgeting provides a basis for evaluating performance by comparing actual results to the budgeted amounts. This helps management to identify areas where actual results are not meeting expectations and take corrective actions. Budgeting also helps to establish goals and priorities for the organization and allocate resources accordingly.

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