Budgeting and control — ACCA Practice Question 10

How to approach this question

Recall the principles of Beyond Budgeting, which focuses on agility, decentralization, and relative performance.

Full Answer

B.Performance is evaluated against relative benchmarks and peers rather than fixed annual targets.✓ Correct

The Beyond Budgeting model argues that traditional budgets are too rigid and time-consuming. Key characteristics include decentralized decision-making, using rolling forecasts, and evaluating performance based on relative success (e.g., beating the competition or internal benchmarks) rather than hitting an arbitrary fixed target set a year in advance.

Common mistakes

Confusing Beyond Budgeting with Zero-Based Budgeting, or assuming it means having no financial control at all.

Section A

FinTech Innovators, a rapidly growing startup, has decided to abandon its traditional annual budgeting process in favor of a 'Beyond Budgeting' approach.

Which of the following is a key characteristic of the Beyond Budgeting model?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 4

More questions from this exam

Section A FinTech Innovators, a rapidly growing startup, has decided to abandon its traditional annual budgeting process in favor of a 'Beyond Budgeting' approach. Which of the following is a key characteristic of the Beyond Budgeting model?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 4

More questions from this exam

Section A

FinTech Innovators, a rapidly growing startup, has decided to abandon its traditional annual budgeting process in favor of a 'Beyond Budgeting' approach.

Which of the following is a key characteristic of the Beyond Budgeting model?