Practice 3 : a)     Explain the importance of incentive systems for motivating performance. b)     Identify and explain the components of management compensation and the tradeoffs that compensation designers make. c) What is meant by the term flexible budget? What role do flexible budgets play in evaluating performance?

Q: Managers should be closely involved in preparing their responsibility accounting budget. How true is…

A: Generally, managers should be involved in preparing their responsibility accounting budget.

Q: budgeting process

A: Definition: Budgeting process: It is a process which involves planning , monitoring, controlling…

Q: "Budgeted performance is a better criterion than past performance for judging managers."   Do you…

A: For judging the current performance  we need a benchmark against which we can see and compare and…

Q: Benefits of Budgeting include all of the following EXCEPT: A) Promotes analysis of results B)…

A: Budgeting is the process of creating a strong plan to spend the funds of the organization. budgets…

Q: Why might managers find a flexible-budget analysis more informative than a static-budget analysis?

A: Static Budget: Static budget is a fixed budget prepared for a particular period of time without…

Q: A performance measurement tool that integrates an organization’s financial and non-financial…

A: Zero-based budgeting - This means making a budget from scratch. The company starts the budget with…

Q: Explaining Costs That Change with Flexible Budget Activity When preparing a company's flexible…

A: Budgets: Budgets are prepared for the planning and controlling purposes. Budgets facilitate…

Q: ‘Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: A budgeting system helps an organization to plan and decide the amount to be spent in a particular…

Q: Evaluate the importance of standard costing in budgeting process within firms

A: In Standard costing an expected cost is substituted above an actual cost, while recording accounting…

Q: “Budgets meet the cost–benefit test. They force managers to act differently.” Do you agree? Explain.

A: A budget is a financial plan prepared by the company for a period. It is prepared to estimate the…

Q: Explain what you understand by Budgets, Fixed budgets and Flexible budgets in the context of control…

A: Organizations produce budgets for a variety of purposes, including cost control, performance…

Q: Explain the relationship between performance reports and flexible budgeting.

A:

Q: QUESTION 26 For which responsibility centers would the performance reports contain budgeted and…

A: The center where the responsibility of displaying both the revenue and the expanse simultaneously is…

Q: “The difference between practical capacity and master-budget capacity utilization is the best…

A: Practical Capacity:Companies adjust the theoretical capacity based on the potential disruptions like…

Q: Budgets are an integral part of management control systems. Evaluate this statement with real life…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: The first step of the budget process is: plan direct control feedback Static budget are often used…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is true of a budget? O A. Budgets help managers to revise their plans and…

A: Introduction: Budget: Budget means an estimation for future period with past period data. Branches…

Q: The Zero Base Budget (ZBB) is the budget system that most influences resource allocation management…

A: SOLUTION EXPLANATION IN TRADITIONAL BUDGETING , THE TOP MANAGEMENT TAKES THE DECISIONS REGARDING ANT…

Q: Which of the following is true in a bottom-up budgeting approach?   Group of answer choices…

A: Bottom-Up Budgeting Approach : It is one type of budgeting which starts from Bottom Departmental…

Q: In a company with different business units, individual managers make decisions by changing various…

A: Sensitivity Analysis: Sensitivity analysis is a financial model that shows how modifications in…

Q: 1. The organizational process of budgeting performs several important functions. Which is true? A.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A budget represents a target and aiming towards a target can be a powerful motivator. However,…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are the major objectives of budgeting? Briefly describe the type of human behavior problems…

A: 1. Objectives of budgeting: Anticipation of future financial condition and future needs for funds…

Q: When would a static budget be effective in evaluating a manager performance

A: We know that budgeting is a planning tool through with entities define a predefined target for…

Q: 'Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: The purpose or motive of budgeting in business management has three aspects: Forecasting the…

Q: Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs…

A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…

Q: 1. Explain the concept of responsibility accounting and its relation with budgeting.

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Identify the main purpose of a flexible budget for managers.

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…

Q: Describe how nonoutput-based cost drivers can be incorporated into budgeting.

A: Budget: The budgeting is a process of preparing budgets and the evaluation of it to see whether the…

Q: Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: A budgeting system helps an organization to plan and decide amount to be spent in a particular…

Q: How flexible budget through performance reporting is help for the management in determination of…

A: Budgeting refers to preparation of  estimated financial data using the past records. Flexible budget…

Q: 'Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: Explain the advantages of encouraging employee participation in budget setting. 2.Explain why zero…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: “Budgeted performance is a better criterion than past performance for judging managers.” Do you…

A:

Q: The implementation of budgeting in a world class manufacturing environment may be affected by the…

A: Principles of each strategy and their effects in budgeting as compared to traditional budgeting: (i)…

Q: Focusing on improving the activities that are showing significant differences between budgeted and…

A: Management by Exception is a management strategy which focuses only on the deviations of actuals…

Q: An internal report that helps management compare actual performance and budgeted performance based…

A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Q: Why do successful companies tend to use the bottom-up approach to establish a master budget?

A: The bottom-up approach increases the efficiency and productivity of the employees as the budget is…

Q: Why is flexibility very important for PFG’s budgeting system to be effective?

A: PFG stands for Penn Fuel Gas, Inc. It is a public utility holding company selling natural gas,…

Q: the advantages of

A: Participative Budgeting Participative budgeting is a budgeting process in which the people who are…

Q: budget performance is abetter critical than past performance for judging managers" do you agree…

A: For judging the current performance  we need a benchmark against which we can see and compare and…

Q: How do budgeted cost rates motivate the support-department manager to improve efficiency?

A:

Q: 1. Which of the following is true? a) The direct materials purchase budget is determined from the…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…