Answered: Q.“Budgeted performance is a better…

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Accounting

Q.“Budgeted performance is a better criterion than past performance for judging managers.” Do you agree? Explain.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 3R

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Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
When would a static budget be effective in evaluating a managers performance?
Why is a clear understanding of managements goals and objectives necessary for effective budgets?
Which approach requires management to justify all its expenditures? A. bottom-up approach B. zero-based budgeting C. master budgeting D. capital allocation budgeting
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.
“Budgeted performance is a better criterion than past performance for judging managers.” Do you agree? Explain.
"budget performance is a better criterion than past performance for judging managers." Do you agree? Expalin
budget performance is abetter critical than past performance for judging managers" do you agree ?explain
“Budgets meet the cost–benefit test. They force managers to act differently.” Do you agree? Explain.
Which of the following is not an advantage of budgeting? a) Forces managers to planb) Provides information for decision makingc) Guarantees an improvement in organizational efficiencyd) Provides a standard for performance evaluatione) Improves communication and co-ordination
Q.“Budgets meet the cost–benefit test. They force managers to act differently.” Do you agree? Explain.
Which of the following is not an accepted principle of effective budgeting? A• Flexibility B• Top management support C• Communication of results D• Responsibility accounting