MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 7, Problem 1E
To determine
Concept introduction:
Budgets: Budgets are prepared to estimate the revenue, costs, receipts and payments for the business. There are several types of budgets prepared for a manufacturing concern. Few major types of budgets prepared by each manufacturing concert are as follows:
- Sales
budget - Cash Collection budget
- Production budget
- Raw material purchase budget
- Expenses Budgets
- Cash disbursement budget
To identify:
The outcomes of Participatory budgeting with potentially negative consequences.
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Students have asked these similar questions
A budget is most likely to be effective if
it is not used to evaluate a manager's performance.
employees and managers at the lower levels do not get involved in the budgeting process.
it is used to assess blame when things do not occur according to plans.
it has top management support.
When a manager is prohibited to exceed its spending from the allowable budget, it may
Select the correct response:
eliminate the need for comparisons of budgeted and actual amounts
usually reduce the need to prepare a cash budget.
result to improved profitability of the company
cause harm to the performance of the company
indicate yes if it describes a potential benefit of budgeting orno if it describes a potential negative outcome of budgeting. Some employees might overstate expenses in budgets.
Chapter 7 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - What is the benefit of continuous budgeting?Ch. 7 - Identify three usual time horizons for short-term...Ch. 7 - Why should each department participate in...
Ch. 7 - How does budgeting help management coordinate and...Ch. 7 - Why is the sales budget so important to the...Ch. 7 - What is the selling expense budget? What is the...Ch. 7 - Prob. 9DQCh. 7 - GOOGLE Google prepares a cash budget. What is a...Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 1QSCh. 7 - Prob. 2QSCh. 7 - Identify which of the following sets of items are...Ch. 7 - Prob. 4QSCh. 7 - Prob. 5QSCh. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 14QSCh. 7 - Prob. 15QSCh. 7 - Manufacturing: Production budget P1 Atlantic Surf...Ch. 7 - Prob. 17QSCh. 7 - Prob. 18QSCh. 7 - Prob. 19QSCh. 7 - Cash receipts, with uncollectible accounts P2 The...Ch. 7 - Cash receipts, with uncollectible accounts P2 Well...Ch. 7 - Prob. 22QSCh. 7 - Prob. 23QSCh. 7 - Prob. 24QSCh. 7 - Prob. 25QSCh. 7 - Prob. 26QSCh. 7 - Prob. 27QSCh. 7 - Prob. 28QSCh. 7 - Prob. 29QSCh. 7 - Prob. 30QSCh. 7 - Activity-based budgeting is a budget system based...Ch. 7 - Royal Phillips Electronics of the Netherlands...Ch. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Exercise 20-5 Manufacturing: Direct labor budget...Ch. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Electro Company manufactures an innovative...Ch. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 18ECh. 7 - Prob. 19ECh. 7 - Prob. 20ECh. 7 - Prob. 21ECh. 7 - Prob. 22ECh. 7 - Prob. 23ECh. 7 - Prob. 24ECh. 7 - Prob. 25ECh. 7 - Prob. 26ECh. 7 - Prob. 27ECh. 7 - Prob. 28ECh. 7 - Prob. 29ECh. 7 - Prob. 30ECh. 7 - Prob. 31ECh. 7 - Prob. 32ECh. 7 - Prob. 33ECh. 7 - Prob. 34ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - The management of Zigby Manufacturing prepared the...Ch. 7 - Kegglers Supply is a merchandiser of three...Ch. 7 - Prob. 6PSACh. 7 - Prob. 7PSACh. 7 - Near the end of 2015, the management of Dimondale...Ch. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 6PSBCh. 7 - Prob. 7PSBCh. 7 - Near the end of 2015, the management of Isle...Ch. 7 - Prob. 7SPCh. 7 - Prob. 1BTNCh. 7 - Prob. 2BTNCh. 7 - ETHICS CHALLENGE C1 BTN 20-3 Both the budget...Ch. 7 - Prob. 4BTNCh. 7 - Prob. 5BTNCh. 7 - Prob. 6BTNCh. 7 - Prob. 7BTNCh. 7 - Prob. 8BTNCh. 7 - Access Samsungs income statement (in Appendix A)...
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- True 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_forwardMany managers complain about the budgeting process. They claim it takes too long, requires too much management time, encourages managers to "pad the budget" because of uncertainties, and creates unnecessary tension among managers. As a result of these charges, some managers and business leaders have called for an abandonment of traditional budgeting practices. However, regardless of budgeting's failures, it continues to be widely used across all types of businesses and not-for-profit enterprises. One reason for the continued use of budgeting is the belief that a competent management team can plan for, manage, and control in large measure the relevant variables that dominate the life of a business. Managers must grapple with uncertainties regardless of whether or not they have a budget. 1 Ask a. Are the managers' complaints about the budgeting process Realistic or Unrealistic? O Realistic O Unrealistic b. Do these complaints create costs for organizations? O Yes O No Mc Graw Prev 1 of…arrow_forwardBudgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem? Allowing employees the opportunity to be a part of the budget process Allowing goals to be so low that employees develop a "spend it or lose it" attitude Setting goals too tightly making it difficult to meet performance expectation Setting goals among managers that conflict with one anotherarrow_forward
- 1 i. Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs that do not represent their best estimate or expectations of what will actually occur. ii. Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.arrow_forwardWhich of the following statements is false? Select one: a. According to responsibility accounting, all managers should be held responsible for all asbects of the master budget. o b. Budgets helps uncover potential bottlenecks. c. Budgeting forces managers to think about and plan for the future. o d. One benefit of following a well-designed budgeting process is Improved performance evaluations. e. Budgeted cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Which of the following activities would be classified as a batch-level activity? Select one: a. none of the given answer. b. Designing a new product. c. Milling a part required for the final product. d. Setting up equipment. e. Training employees.arrow_forwardIf a manager is not able to meet the budget and it has been ________________ , the manager can alwayssay that the budget was unreasonable or unrealistic to start with, and therefore was impossibleto meet.arrow_forward
- Explain the different reasons why a manager might submit a biased budget estimate.arrow_forwardWhich of the following factors will most likely have a negative impact on a manager's motivation with regards to the budget? O The budget targets are challenging but attainable. O The manager's input was highly regarded throughout the budget vetting process. O The budget includes some budgetary slack. O The budget provides too little scope for managers to perform their dutics,arrow_forwardWhich of the following statements are TRUE? I. Responsibility accounting attempts to assign blame for problems to a specific manager.II. One benefit of a budget is that it helps managers gather relevant information for improving future performance.III. Challenging budgets tend to motivate improved performance.IV. Controllability may be difficult to pinpoint because some costs are the result of the market, not the manager.arrow_forward
- Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following situations will likely lead to human behavior problems? a. allowing employees the opportunity to be a part of the budget process b. setting goals too loosely, creating a budgetary slack c. setting goals that are consistent across the firm d. setting goals that are reasonable and attainablearrow_forwardBriefly describe human behavior problems that might arise if budget goals are set too tightly. What behavioral problems are associated with setting a budget too loosely? When would a company use zero-based budgeting? Why should the production requirements outlined in the production budget be carefully coordinated with the sales budget?arrow_forwardBudget slack is the situation in which a. there is an intentional overstatement of expenses. b. there is an intentional overstatement of revenues. c. the company is ahead of schedule in preparing the budget. d. sales are slow during certain budget periods.arrow_forward
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