may be overlooked by many IT professionals, which may have a negative influence on the project's completion. Explanation of the budgeting process for a new project. What is a "sunk cost" and how do you define it? Both IT and human sunk costs should be included in the examples. What is it about them that makes it so difficult to ignore

may be overlooked by many IT professionals, which may have a negative influence on the project's completion. Explanation of the budgeting process for a new project. What is a "sunk cost" and how do you define it? Both IT and human sunk costs should be included in the examples. What is it about them that makes it so difficult to ignore

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1MC: Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing...

See similar textbooks

Similar questions

Which of the following is NOT true of a task budget process for research? Multiple Choice Research costs can be covered by discretionary reserves of an organization. Research funds come from the manager’s own operating budget. Research costs can be covered by the operating budget of an in-house research operations. It is competitive; only well-advocated projects get funded. Internal politics sometimes prevent great research projects from getting funded.
Would you prefer the use of bottom-up or top-down budgeting for project cost control? What are the advantages and disadvantages associated with each approach?
Which of the following is an accurate statement about project costs? Group of answer choices Indirect costs like office space and utilities must be excluded) Budgets cannot be padded with a “miscellaneous” budget item. The budget is an estimate but may change as the project develops. Costs must be documented in tables to help readers focus on specific items.
Which of the following is true of budgeting? a.Budgeting relies on the control cycle to design the planning cycle for future action. b.Budgeting eradicates the need for keeping a buffer against uncertainties in demand. c.Budgeting focuses only on long-term objectives as covered by the planning cycle. d.Budgeting forces management to plan for the future. e.Budgeting creates a plan of action only in terms of production units.
Which of the following explains why managers compare the budgeted costs to actual costs? a. Managers only focus on the budgeted costs and infrequently compare these with actual costs. b. Managers only want to know how well they did to control costs. c. Managers never compare budgeted costs to actual costs. d. Managers evaluate how well they did to control costs and learn how to do better in the future. e. Managers only want to learn how to make better decisions in the future.
“Budgets are the best management tool, but I think they can cause arguments and disagreements between different budget holder.” According to this quote, discuss in detail the possible advantages of budgeting.
Requiring a relative short pay-back period for projects indicates a high risk avoiding propensity within the organisation
What factors can contribute to unsuccessful budgeting? How can these situations be avoided?
is this statement true or false? and why? Requiring a relative short pay-back period for projects indicates a high-risk avoiding propensity within the organisation
A difference between standard costs used for cost control and budgeted costs Can exist because budgeted costs should be verified first by actual activities while standard cost are based on project costs. Can exist because standard cost must be determined after the budget is prepared. Can exist because established budgeted costs involve employee participation and standard cost do not Can exist because standard costs represent what costs should have been while budgeted cost represent expected actual costs.
Faced with a long-run make-or-buy decision, the manager should do all of the following except: a. consider differences in the required capital investment and the timing of cash flows b. compare the cost of making the parts with the cost of buying them c. consider the quantity and quality of the parts as well as the technical know-how required d. use a cost study with only the differential costs and with no allocation of existing fixed overhead or profit
The board of directors of AMSB are confused between IRR and NPV. Briefly discuss the Internal Rate of Return rule used as an alternative to NPV in project evaluation. What are its strengths and weaknesses when compared to the NPV rule?