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.

Q: Some critics of budgeting believe that budgets are effective tools for planning but not for…

A: The question is based on the concept of budgeting and its utilization in management decision making.…

Q: Why is participative budgeting often an effective management tool?

A:

Q: Explain the value of utilizing a balance sheet to make a budget adjustment. What is the danger?

A: The budgeted balance sheet is usually prepared at the start of the fiscal year. The organization…

Q: Explain why zero based budgeting might be a useful tool to employ to ensure that budgetary…

A: Budgeting is the way that one business uses to manage and control its cost elements for ensuring…

Q: Briefly describe the type of human behavior problems that might arise if budget goals are set too…

A: Budget is a tool which is used in the planning and controlling process by estimating the revenue and…

Q: Budgets, Fixed Budgets and Flexible Budgets

A: Fixed Budgeting:The leased Institute of Management Accountants (UK) defines a hard and fast budget…

Q: “The sales forecast is the cornerstone for budgeting.” Why?

A:

Q: What are some limitations of the budgeting process?

A: Budgeting is an important exercise that is performed in most of the organizations. Budgeting has lot…

Q: In fiscal management of an LRTC: Why should we justify the budget? How can we develop cost-effective…

A: As per our protocol we provide solution to the one question only but as you have asked multiple…

Q: What are the advantages and disadvantages of the participatory approach to budgeting?

A: Participative budgeting is a budgeting process in which the people who are in the lower levels of…

Q: Briefly describe the type of human behavior problems that might arise if budget goals are set too…

A: A budget is a financial plan for a defined period, often one year. It may also include planned sales…

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: gets are related to the following management fuctions, except Performance evaluation…

A: Step 1 Budgeting to plan and manage your finances. If you write down on paper or a computer, you can…

Q: Which of the following is not a benefit of budgeting? a. It sets some standards to evaluate…

A: Budgeting is defined as the procedure of planning the manner in which the work to be conducted and…

Q: Which of the following statements is incorrect? * O An imposed budget is the same as a participative…

A: Answer: Budget is the statement that is prepared for revenue and expenses as an estimation made by…

Q: Budgets

A: following statements is true.

Q: There are a number of benefits associated with budgeting. Which of the following is not frequently…

A: Budgeting refers to the process of estimation of revenues and expenses for an entity over a specific…

Q: What are some examples of effective monitoring and control practices, and how do they help address…

A: Managers take necessary steps to control the costs in a particular accounting period. It is known as…

Q: What are the ethical provisions that needs to be followed in budgeting?

A: The process of allocating a company's financial resources is known as budgeting. Although necessity…

Q: Which of the following is not a part of budgeting?A. planningB. finding bottlenecksC. providing…

A: Budgeting is an important process in management accounting. Budgets means estimates or forecasts…

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

A: Companies prepare budgets for various reasons such as controlling costs, evaluating performance, or…

Q: Explain why budgets are useful and how management philosophy can influence the budget process.

A: Budget is the estimated data which is prepared or estimated in advance, in simple terms before…

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: The accountant perspective of the budget views the budget as a rational decision-making tool? True…

A: Budgeting is the process of estimating the profitability, business requirements like production…

Q: indicate yes if it describes a potential benefit of budgeting orno if it describes a potential…

A:

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: Why is it important to follow ethical provisions in making budgeting model?

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: The purpose of a flexible budget is: a) To cap discretionary expenditure b) To produce a revised…

A: Flexible budget: A flexible budget is a budget that adjusts to the activity or volume levels of a…

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: Which of the following statements is false? (You may select more than one answer.)a. A flexible…

A: A flexible budget is: Used for control purpose. Prepared at the end of the period. A static budget…

Q: How does activity-based budgeting explain the logic of budgeting?

A: Activity based budgeting: It is a budgeting system where budgets are prepared based on the expected…

Q: What assumption is implicitly made about cost behavior when all of the items in a static planning…

A: Static Budget:   A budget that doesn’t changes with the volume of activity throughout the period is…

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: Why is a clear understanding of management’s goals and objectives necessary for effective budgets?

A: Budgeting is a process of planning future expenses and income so that an organization ensure the…

Q: The primary benefits of budgeting include all of the following except it Select one: O a. provides…

A: Budget is an estimation of expenses and revenues over a future period which needs to be rechecked…

Q: Describe the various behavioral problems that are associated with setting a budget too "loosely."

A: If too tightly budgets are set then the employees are unable to meet targets because they are…

Q: Why is planning, supervising, and reviewing the budget important in budgeting model

A: Answer : Planning ,supervising and reviewing the budget is very important in budgeting model The…

Q: Briefly discuss the budgeting process  and explane  how  the budgeting process satisfies the purpose…

A: Budgeting process: The process of streamlining the future expenditure process by predicting or…

Q: Which of the following budgeting processes aims to challenge the existing way of operating, by…

A: A zero-based budgeting process is a technique in which all the previous expenses are set as zero so…

Q: Which of the following is a use of budgets for control? * A. plans can be made for the future B.…

A: Controlling activities are those activities which aid in monitoring the performance of a particular…

Q: Which of the following is not a benefit of budgeting It is a basis for performance evaluation.

A: A budget is a forecast of the financial position and the results of the company for the period of…