Generally speaking, budgets are not used to: assist in the control of profit and operations. facilitate communication and coordinate activities. evaluate performance. create a plan of action. identify a company's most profitable products

Generally speaking, budgets are not used to: assist in the control of profit and operations. facilitate communication and coordinate activities. evaluate performance. create a plan of action. identify a company's most profitable products

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter9: Cost Accounting For Service Businesses, The Balanced Scorecard, And Quality Costs

Section: Chapter Questions

Problem 11Q: Explain how a budgeted income statement for a service business may be used for both planning and...

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Question

Generally speaking, budgets are not used to:

assist in the control of profit and operations.
facilitate communication and coordinate activities.
evaluate performance.
create a plan of action.
identify a company's most profitable products.

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Similar questions

If management is being evaluated on their ability to manage a budget, what can they do to decrease cash outflow?
Which of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.
Suppose that the vice president of sales is a particularly pessimistic individual. If you were in charge of developing the master budget, how, if at all, would you be influenced by this knowledge?
Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
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“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not So far this questioned was answered before with: The statement cannot be agreed, as budget preparations vary from company to company as per the company's goals and strategies. Budgeting is estimated standards set which acts like an yardstick for respective departments (purchase, sales, production etc.) to perform. These budgets serve as a guidelines or target for the department to achieve effective and efficient output. These budgets are prepared analysing the past performance and other factors such as capacity and procedures and policies of the organisation I feel this needs to be explained more - could you please write another 100 words explaining this question please :))
“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not.
What are the major objectives of budgeting? Briefly describe the type of human behavior problems that might arise if budget goals are set too tightly. What behavioral problems are associated with setting a budget too loosely? Why should the production requirements set forth in the production budget be carefully coordinated with the sales budget?
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.
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