A306 Disc Handout Chapter 8-dd

32.  Which of the following statements about budget acceptance in an organization is true? Group of answer choices The most widely accepted budget by the organization is the one prepared by top management. Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. The most widely accepted budget by the organization is the one prepared by the department heads. Budgets are hardly ever accepted by anyone except top management.

Q1) (Write in box “True or False “ )                                                                                                           A. The most forward-looking budget is the strategic plan, which sets the overall goals and objectives of the organization.                                                                                                                 (       )                                               B. An activity-based flexible budget is based on budgeted costs for different activity and related cost driver.                                                                                                                (         )                                                                                                                         C. Managers trying to evaluate the effects of changes in volume of goods or services produced might not be interested in upward changes such as increased sales expected from increases in promotion or…

1) Which of the following is a resource constraint? a) Machine hours available b) Sales commissions c) Cost per unit d) Budgeted overhead   2) Development of a budget ____________. a)Is required by GAAP. b) Is required by tax authorities. c) Enhances communication and coordination among managers. d) Enhances borrowing limit of the firm.   3) Which of the following statements relating to budgeting is NOT true? a) A budget is a formal document that quantifies a company’s plans for achieving its goals. b)Budgets are useful in the control process because they provide a basis for evaluating performance. c) A bottom-up approach to budgeting involves substantial input from lower level managers. d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.

2.Based from the given choices below, peruse which is not considered to be a primary goal of budgeting - Group of answer choices - To make sure that the company expands its operations - To communicate the company's plans throughout the entire business organization - To control revenues and expenses during a given period

Ma1. Which of the following statements is true?   A. Budget reports comparing actual results with planned objectives should be prepared only once a year   B. OA static budget is most useful for evaluating a manager's performance in controlling variable costs   C. The master budget is not used in the budgetary control process   D. OA static budget ignores data for different levels of activity

UESTION 33 Consider the following five situations:    (I)    Relative performance evaluation is used for evaluating store managers.  (II)   Insurabce policy holders pay deductibles before being covered by the insurance  (III)  The warehouse manager is not held responsible for damages and stolen goods during a riot.   (IV)  Individual stores are allocated (charged) for the cost of advertising done by the headquarters.  (V)   In performance evaluation, the actual outcome is compared witht the flexible budget, not the original budget.   Which of the above would be examples that go againt the controllability principle (concept)?   A. I, II, and III   B. I, II, and IV   C. I and III   D. II and IV   E. III and V

PLEASE ANSWER ALL TRUE OR FALSE 12. If actual results are different from planned results by a large amount, the difference should be investigated by management to achieve effective budgetary control.13. Cash budget reports are often prepared daily, whereas others are prepared less frequently depending on the activities being monitored.