- ?All of the following are advantages of the use of budgets in a management control
system except that budgets
- ?In the budgeting and planning process for a firm, which one of the following should be
- ?Each organization plans and budgets its operations for slightly different reasons.
Which one of the following is not a significant reason for plannin...
- ?Which one of the following best describes the role of top management in the budgeting
process? Top management
- ?Which one of the following is usually not cited as being an advantage of a formal budgetary process?
- ?The major objectives of any budget system are to
- ?One of the primary advantages of budgeting is that it
- ?A budget helps a company control costs by setting cost guidelines. However, a budget also performs the function(s) of
- ?When comparing performance report information for top management with that for lower-level management,
- ?An improperly executed budget process might have the effect(s) of
- ?Ineffective budget control systems are characterized by
- ?Which of the following statements regarding budgets is false?
- ?A planning calendar in budgeting is the
- ?A budget manual, which enhances the operation of a budget system, is most likely to include
- ?Which one of the following is not an advantage of a participatory budgeting process?
- ?In developing the budget for the next year, which one of the following approaches would produce the greatest amount of positive motivation and goal co...
- ?Which one of the following statements concerning approaches for the budget development process iscorrect?
- ?Rock Industries has four divisions. In the quest to develop a more achievable budget for the
coming year, the chief executive officer has elected to ...
- ?When developing a budget, an external factor to consider in the planning process is
- ?An advantage of participative budgeting is that it
- ?The primary role of the budget director and the budgeting department is to
- ?Which one of the following is not considered to be a benefit of participative budgeting?
- ?The budgeting technique that is most likely to motivate managers is
- ?Which one of the following is most important to a successful budgeting effort?
- ?The major disadvantage of a budget produced by means of a top-down process is
- ?All of the following are criticisms of the traditional budgeting process except that it
- ?The following sequence of steps is employed by a company to develop its annual profit plan: Planning guidelines are disseminated downward by top m...
- ?Which one of the following items would most likely cause the planning and budgeting
system to fail? The lack of
- ?All of the following are advantages of top-down budgeting as opposed to participatory budgeting, except that it
- ?Marietta Thomas, Amador Corporation’s vice president of planning, has seen and heard it all. She has told the corporate controller that she is “.....
- ?Budgeting problems where departmental managers are repeatedly achieving easy goals or failing to achieve demanding goals can be best minimized by esta...
- ?All of the following are disadvantages of top-down budgeting as opposed to participatory
budgeting, except that it
- ?Sub optimal decision making is not likely to occur when
- ?The budgeting process should be one that motivates managers and employees to work toward organizational goals. Which one of the following is least lik...
- ?The best explanation of how the efficient allocation of organizational resources is planned during the budgeting process is that a budget
- ?A company’s annual budget provides information that can impact the company’s
- ?Which one of the following is an advantage of using the budgeting process to judge
- ?Which one of the following is not a characteristic of a successful budget process?
- ?Which one of the following statements best describes budgetary slack?
- ?The finance department of a large company has prepared a master budget with very limited expense budgets for each department. The department managers ...
- ?Jura Corporation is developing standards for the next year. Currently XZ-26, one of the material components, is being purchased for $36.45 per unit. I...
- ?After performing a thorough study of Michigan Company’s operations, an independent consultant determined that the firm’s labor standards were prob...
- ?When compared with ideal standards, practical standards
- ?Diana Stinson, Cherry Valley, Inc.’s factory manager, had lost her patience. Six months ago,
she appointed a team from the production and service d...
- ?All of the following statements concerning standard costs are correct except that
- ?One approach for developing standard costs incorporates communication, bargaining, and
interaction among product line managers; the immediate supervi...
- ?Granger Company is reviewing its standard machine hours per unit to use in its budget for the upcoming year. The machine manufacturer’s specificatio...
- ?The budget that describes the long-term position and objectives of an entity within its environment is the
- ?A manufacturer makes picture frames that require one sheet of glass each. Each sheet of glass comes from one larger sheet that is cut into four pieces...
- ?All of the following are advantages of the budgeting process except that the budget
- ?Herrington Industries is able to sell up to 50,000 units of product X each month. Engineers
are currently in the process of studying labor movement t...
- ?In an organization that plans by using comprehensive budgeting, the master budget is A.
- ?While an operating budget is a key element in planning and control, it is not likely to
- ?In preparing a corporate master budget, which one of the following is most likely to be prepared last?
- ?The master budget process usually begins with the
- ?All of the following are considered operating budgets except the
- ?Which one of the following items is the last schedule to be prepared in the normal budget preparation process?
- ?The master budget
- ?The preparation of a comprehensive master budget culminates with the preparation of the
- ?Wilson Company uses a comprehensive planning and budgeting system. The proper order
for Wilson to prepare certain budget schedules would be
- ?Which one of the following may be considered an independent item in the preparation of the
- ?The Yummy Dog Bone Company is anticipating that a major supplier might experience a
strike this year. Because of the nature of the product and emphas...
- ?The starting point for creating a master budget for a proprietary secretarial school would be
- ?Which of the following is normally included in the financial budget of a firm?
- ?The financial budget process includes
- ?The foundation of a profit plan is the
- ?The operating budget process usually begins with the
- ?Adams Manufacturing, Inc., produces farm tractors. The details of its budgeted cost of
goods manufactured schedule should come from which of the foll...
- ?In developing a comprehensive budget for a manufacturing company, which one of
the following items should be done first?
- ?When budgeting, the items to be considered by a manufacturing firm in going from a sales
quantity budget to a production budget would be the
- ?Which one of the following schedules would be the last item to be prepared in the normal
budget preparation process?
- ?After the goals of the company have been established and communicated, the next step in
the planning process is development of the
- ?The production budget process usually begins with the
- ?Individual budget schedules are prepared to develop an annual comprehensive or master budget. The budget schedule that would provide the necessary inp...
- ?Which one of the following items should be done first when developing a comprehensive budget for a manufacturing company?
- ?There are various budgets within the master budget cycle. One of these budgets is the production budget. Which one of the following best describes the...
- ?The budget that is usually the most difficult to forecast is the
- ?When sales volume is seasonal in nature, certain items in the budget must be coordinated. The three most significant items to coordinate in budgeting ...
- ?Maximilian Computer Company uses a comprehensive budgeting system in planning its annual operations. Which of the following best describes the informa...
- ?Which one of the combinations listed correctly depicts the chronological order of preparation
for the following budgets?
I. Cost of goods sold budge...
- ?Which one of the following best describes the order in which budgets should be prepared
when developing the annual master operating budget?
- ?When preparing the series of annual operating budgets, management usually starts the
process with the
- ?Which of the following is normally included in the operating budget?
- ?Which budget is prepared after the creation of the cash budget?
- ?Which one of the following is not an advantage of activity-based budgeting?
- ?An advantage of incremental budgeting when compared with zero-based budgeting is that incremental budgeting
- ?The major appeal of zero-based budgeting is that it
- ?A continuous (rolling) budget
- ?A systemized approach known as zero-based budgeting (ZBB)
- ?The major feature of zero-based budgeting (ZBB) is that it
- ?A continuous profit plan
- ?Zero-based budgeting forces managers to
- ?A company uses a type of budgeting that focuses on the cost of the processes required to
produce and sell products and services. This type of budgeti...
- ?Blackmore, Inc., has a goal to reduce wastefulness and develop a tight, efficient budget.
The management team knows that this will take time, so they...
- ?Medico has found that its annual budgets are quickly outdated once actual data is recorded.
Sometimes actual preparations have already begun for the ...
- ?The type of budget that is available on a continuous basis for a specified future period -- by
adding a month, quarter, or year in the future as the ...
- ?The use of the master budget throughout the year as a constant comparison with actual results signifies that the master budget is also a
- ?Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertainty in unit sales volume...
- ?A budgeting approach that requires a manager to justify the entire budget for each budget period is known as
- ?There are many different budget techniques or processes that business organizations can employ. One of these techniques or processes is zero-based bud...