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how are budgets used as a tool for performance evaluation well to begin with one of the core functions of management is planning part of that planning process is to allocate resources ingly based upon the needs of the organization or that segment of the organization so budgets do just that they plan for the needs of the organization based upon given objectives or goals that that unit or that organization will seek to achieve and the allocate resources to those objectives the budget allocates a specific thing dollars which is representative for Value those dollars can be used again towards a specific task or function now when we are measuring performance as a result oftentimes the budget is a good indicator of some aspects of performance so with that being said what are some key performance indicators or metrics that we can use one that relate to the budget or in the budget itself act as a performance indicator well to start with budget variants how far the budget varies from the expect
