FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
9th Edition
ISBN: 9781266515071
Author: Wild
Publisher: MCG CUSTOM
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Textbook Question
Chapter 20, Problem 2QS
Budgeting benefits C1
For each of the following items 1 through 6, indicate yes if it describes a potential benefit of budgeting or no if it describes a potential negative outcome of budgeting.
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_____1. Budgets help coordinate activities across departments.
_____2. Budgets are useful in assigning blame for unexpected results.
_____3. A budget forces managers to spend time planning for the future.
_____4. Some employees might overstate expenses in budgets.
_____5. Budget can lead to excessive pressure to meet budgeted results.
_____6. Budget can provide incentives for good performance.
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Case 3
Ch 22 discussed Budgeting which involves (1) Planning - establishing specific goals, (2) Directing - executing plans to achieve the goals, and (3) Controlling - periodically comparing actual results with the goals and use the feedback to adjust activities in the future.
Ch 23 discussed Budget Variances- is the difference between the budgeted and the actual amount. The budget variance is favorable when the actual revenue is higher than the budget or when the actual expense is less than the budget.
Complete the Personal Budget which assumes:
Monthly Gross Wages=60000/12
$ 5,000.00
Deduct:
Fed Income Tax-15%
$ 750.00
per tax rate schedule
https://turbotax.intuit.com/tax-tips/irs-tax-return/current-federal-tax-rate-schedules/L7Bjs1EAD
FICA - 7.5%
$ 375.00
State Inc Taxes 5%
$ 250.00
https://www.ftb.ca.gov/forms/2020/2020-California-Tax-Rate-Schedules.pdf
Net Pay for Budget
$ 3,625.00
CH 28…
Q1) (Write in box “True or False “ )
A. The most forward-looking budget is the strategic plan, which sets the overall goals and objectives of the organization.
( )
B. An activity-based flexible budget is based on budgeted costs for different activity and related cost driver.
( )
C. Managers trying to evaluate the effects of changes in volume of goods or services produced might not be interested in upward changes such as increased sales expected from increases in promotion or…
A) Enter True or False
1.
________
An important part of the planning process is the creation of a budget.
2.
________
Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing.
3.
________
Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget period.
4.
________
The starting point of the planning process is management’s strategic plan or vision of what they want the organization to achieve over the long term.
5.
________
A short-term objective is a specific goal that managers want to achieve in more than a year to reach their long-term goals.
6.
________
Planning is the forward-looking phase of the planning and control process that involves setting long-term objectives and defining short-term…
Chapter 20 Solutions
FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
Ch. 20 - Budget motivation C1 For each of the following...Ch. 20 - Budgeting benefits C1 For each of the following...Ch. 20 - Prob. 9QSCh. 20 - Prob. 10QSCh. 20 - Prob. 11QSCh. 20 - Prob. 19QSCh. 20 - Cash receipts, with uncollectible accounts P2 The...Ch. 20 - Cash receipts, with uncollectible accounts P2 Well...Ch. 20 - Prob. 22QSCh. 20 - Budgeted loan activity P2 Santos Co. is preparing...
Ch. 20 - Prob. 25QSCh. 20 - Prob. 26QSCh. 20 - Prob. 27QSCh. 20 - Prob. 28QSCh. 20 - Prob. 29QSCh. 20 - Prob. 30QSCh. 20 - Prob. 3ECh. 20 - Prob. 10ECh. 20 - Prob. 12ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Prob. 32ECh. 20 - Prob. 1PSACh. 20 - Prob. 2PSACh. 20 - Prob. 3PSACh. 20 - Prob. 1PSBCh. 20 - Prob. 2PSBCh. 20 - Prob. 3PSBCh. 20 - Prob. 4PSBCh. 20 - Prob. 5PSBCh. 20 - Identify at least three benefits of budgeting in...Ch. 20 - Prob. 2DQCh. 20 - What is the benefit of continuous budgeting?Ch. 20 - Identify three usual time horizons for short-term...Ch. 20 - Why should each department participate in...Ch. 20 - How does budgeting help management coordinate and...Ch. 20 - Why is the sales budget so important to the...Ch. 20 - What is the selling expense budget? What is the...Ch. 20 - Prob. 9DQCh. 20 - GOOGLE Google prepares a cash budget. What is a...Ch. 20 - Prob. 11DQCh. 20 - ETHICS CHALLENGE C1 BTN 20-3 Both the budget...Ch. 20 - Prob. 2BTNCh. 20 - Prob. 3BTN
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- a. Based on the static budget report:1. What was the primary cause(s) of the loss in net income?2. Did management do a good, average, or poor job of controlling expense?3. Were management’s decisions to stay competitive sound?b. Prepare a flexible budget report for the year.c. Based on the flexible budget report, answer the three questions in part (a) above.d. What course of action do you recommend for the management of Alps Pasturesarrow_forwardUESTION 33 Consider the following five situations: (I) Relative performance evaluation is used for evaluating store managers. (II) Insurabce policy holders pay deductibles before being covered by the insurance (III) The warehouse manager is not held responsible for damages and stolen goods during a riot. (IV) Individual stores are allocated (charged) for the cost of advertising done by the headquarters. (V) In performance evaluation, the actual outcome is compared witht the flexible budget, not the original budget. Which of the above would be examples that go againt the controllability principle (concept)? A. I, II, and III B. I, II, and IV C. I and III D. II and IV E. III and Varrow_forwardTrue or False 1. Budgets should not be used to motivate and reward employees. 2. Budgets play an important communication role within organizations. They provide a mechanism for managers to share expectations and priorities for the future. 3. Budgets also provide useful benchmarks for evaluating and rewarding employee performance.arrow_forward
- 2.Based from the given choices below, peruse which is not considered to be a primary goal of budgeting - Group of answer choices - To make sure that the company expands its operations - To communicate the company's plans throughout the entire business organization - To control revenues and expenses during a given periodarrow_forwardB. Comment on the cash balance for August and September.C. Explain two (2) ways budgets are useful to managers.arrow_forwardPLEASE ANSWER ALL TRUE OR FALSE 12. If actual results are different from planned results by a large amount, the difference should be investigated by management to achieve effective budgetary control.13. Cash budget reports are often prepared daily, whereas others are prepared less frequently depending on the activities being monitored.arrow_forward
- true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)arrow_forwardMa1. Which of the following statements is true? A. Budget reports comparing actual results with planned objectives should be prepared only once a year B. OA static budget is most useful for evaluating a manager's performance in controlling variable costs C. The master budget is not used in the budgetary control process D. OA static budget ignores data for different levels of activityarrow_forward
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