3608294 Managerial Accountingedited

Efficient and effective use of limited resources is the key to success in today’s economy. Assisting in the budget planning process is a major task for managerial accountants. Discuss the pros and cons of the two basic philosophies that organizations should follow to plan and develop their budgets.

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Which of the following is true in a bottom-up budgeting approach?   Group of answer choices departments determine their needs and relate them to the overall goals supervisors tell departments their budget amount and the departments are free to work within those amounts departments budget their needs however they see it every expense needs to be justified

Efficient and effective use of limited resources is the key to success in today’s economy. Assisting in the budget planning process is a major task for managerial accountants. All organizations have limited resources, but whom in the organization should be involved in the budgeting process?

Which of the following is true in a bottom-up budgeting approach?   a.Supervisors tell departments their budget amount and the departments are free to work within those amounts. b.Departments determine their needs and relate them to the overall goals. c.Every expense needs to be justified. d.Departments budget their needs however they see fit.

1. Which of the following is an advantage of the budgeting process? a. It forces management to focus on the past and not be distracted by the day-to-day operations of the business. b. It can communicate to employees specific information about their past performance to determine their promotion prospects. c. It can communicate to employees specific information about their past performance to determine their promotion prospects. d. It can communicate to employees information about their performance expectations in the period ahead.   2. Which one of the following statements regarding changing inventory costing methods is true? a. A change in inventory methods can be justified if the change is made to better match profits with revenue b. Changing inventory costing methods violates comparability c. One place that the reader of an annual report would be able to identify that a company changed inventory costing methods is the statement of shareholders' equity d. Changing inventory costing…

A company can expect to receive which of the following benefits when it starts its budgeting process? a. The budget provides managers with a benchmark against which to compare actual results for performance evaluation. b. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. c. The budget helps motivate employees to achieve sales growth and cost-reduction goals. d. All of the above

Please select the correct answer “Communication” a.is when a department is willing to prepare a budget and share the information with other departments    b.forces executives to think of relationships among individual operations, departments, and the company as a whole    c.All of the responses are correct   d.is ensuring that all relevant parties are aware of the company’s objectives and that the objectives are understood and accepted by all departments and functions, especially when plans are developed

Explain the advantages of encouraging employee participation in budget setting. 2.Explain why zero based budgeting might be a useful tool to employ to ensure that budgetary requirements are kept up to date

It is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required:  Define the following terms:  iii. Feed -back loop. Explain this as it applies in the Control Circle. iv. Identify and explain in detail features of feed- back which add value to the management of an institution.

1. Which of the following is NOT an objective of the budgeting process? a. O a. To communicate management's plans throughout the entire organization O D.To provide a means of allocating resources to those parts of the organization where they can be used most effectively С. To ensure that the company continues to grow OTo uncover potential bottlenecks before they occur

(3) Explain the ethical considerations as it relates to using budgets as a basis for rewarding managers? (4)Explain three specific benefits that a system of budgetary planning and control may bring to an organization.

1.Explain the advantages of encouraging employee participation in budget setting. 2.Explain why zero based budgeting might be a useful tool to employ to ensure that budgetary requirements are kept up to date

Which of the following is not a benefit of budgeting? O Provide a way to measure business performance Help managers communicate expectations and quickly. spot deviations Keep managers focussed on financial implications of their business decisions O Provide a way to hire specialized labors

Which one of the following is not considered to be a benefit of participative budgeting? When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. Managers are more motivated to reach the budget goals because they participated in setting them. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization. The budget estimates are prepared by those in direct contact with various activities.

Organizations rely on effective budgetary planning for successful financial performance. Explain how the roles of managers can assist organizations to achieve their budgetary goals.

Select all of the benefits of budgeting. Facilitates the coordination of activities within the business O Requires management to plan ahead and formalize goals O Motivates personal throughout the organization to meet planned objectives ns O Results in greater management awareness of the business's overall operations O Provides definite objectives for evaluating performance