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Performance budgeting links resources with:
AOutputs and activities
BProfit only
CAudit findings
DCost variances only
Answer & Solution
Correct answer: A. Outputs and activities
1. Performance budgeting frames each budget head around the activities it supports.
2. Inputs (resources) and outputs (deliverables) are matched.
3. This emphasises what is achieved rather than just what is spent.
4. Hence performance budgeting links resources with outputs and activities.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.8.2 ¶2_
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