"budgeted performance is a better criterion than past performance for judging managers." do you agree? why?
a. disagreelong dashneither budgeted nor past performances are a good judge of managers. budgeted performances only tell you how the managers expect the company to perform and past performances may include inefficiencies that we do not want to take into consideration.
b. agreelong dashthe budgets are based on the same figures every year, and it is the best way to judge whether the company keeps at a consistent level. inefficiencies are not included as the budget starts "fresh" every year with the same figures.
c. disagreelong dashpast performances better gauge how a manager has performed. the budgets can only tell you how they expect to perform, not their actual results.
d. agreelong dashbecause inefficiencies included in past results can be detected and eliminated in budgeting. also, future conditions may be expected to differ from the past, and these can also be factored into budgets.