Question

Match the following statements to the appropriate budgeting objective or benefit: developing strategies, planning, directing, controlling, coordinating and communicating, and benchmarking.

1. Managers are required to think about future business activities.

2. Managers use feedback to identify corrective action.

3. Managers use results to evaluate employees’ performance.

4. Managers work with managers in other divisions.

Short answer

1. Planning
2. Controlling
3. Benchmarking
4. Coordinating and communicating

Step-by-step solution

Planning is a budgeting benefit

Managers are required to think about future business activities in a systematic way so that the decisions can be taken as per formalized plan and haphazard decision making can be avoided.

Controlling is a budgeting objective

Managers use feedback to identify corrective action.The controlling step is not the end but a start to developing strategies step.

 Step 3: Benchmarking is a budgeting benefit

Managersuse results to evaluate employees’ performanceby comparing them with the benchmarks set by the company.

Coordinating and communicating is a budgeting benefit

Managers work with managers in other divisions so thatthey can work together to make a single, unified, comprehensive plan for the business.