Question

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. A budget demands integrated input from different business units and functions. C. Budgeting requires close cooperation between accountants and operational personnel. D. Budget numbers are used to evaluate the performance of managers.

Answer 1

Answer:

Answer for the bench marking function of the budgeting​ process is option

C) Budgeting requires close cooperation between accountants and operational personnel.

Explanation:

Bench marking is setting a standard.

During the budgeting process, it can be overwhelming to put together a strategic plan that will suffice for a period. That is where bench marking comes in to aid the procedure.

Instead of just having to guess at your key business numbers, you can look at industry standards by consulting with the accounting and operational personnel before you put your budget together.

For example, industry benchmarks can help you figure out what percentage of your sales most companies spend on marketing and what your margin should be on every sale.

You can use this method for lots of other metrics, including profits, marketing spend, inventory to keep on hand, and cash flow metrics like accounts payable and accounts receivable.