Performance budgeting relates expenditures and revenues to what?

Performance budgeting relates expenditures and revenues to what?

• A. Workloads
• B. Public goals
• C. Cost centers
• D. Time periods

Answer: (A)

Performance budgeting ties expenditures and revenues to the volume of work the organization expects to deliver. The budget is driven by outputs, so resources are allocated based on the amount of workload—such as cases processed, services provided, or inspections completed. This allows you to gauge cost per unit of work and see whether funding matches the level of activity and performance aims. If workloads increase, funding should rise to cover the extra activity; if they decrease, spending and revenue projections adjust accordingly. This focus on workload as the driver differentiates it from approaches that emphasize outcomes (public goals), organizational units (cost centers), or budgeting cycles (time periods).

Performance budgeting ties expenditures and revenues to the volume of work the organization expects to deliver. The budget is driven by outputs, so resources are allocated based on the amount of workload—such as cases processed, services provided, or inspections completed. This allows you to gauge cost per unit of work and see whether funding matches the level of activity and performance aims. If workloads increase, funding should rise to cover the extra activity; if they decrease, spending and revenue projections adjust accordingly. This focus on workload as the driver differentiates it from approaches that emphasize outcomes (public goals), organizational units (cost centers), or budgeting cycles (time periods).