Question

Performance budgeting is based on:

• A. Items of expenditure
• B. Items of investment
• C. Objective of expenditure
• D. Plan of implementation

Answer 1

The correct option is C Objective of expenditure

A performance budget is a budget that reflects the input of resources and the output of services for each unit of an organization. This type of budget is commonly used by government bodies to show the link between taxpayer funds and the outcome of services provided by federal, state or local governments.

Therefore performance budgeting is based on objective of expenditure