(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue? a. Participative budgeting b. Budgetary slack c. Strategic planning d. Benchmarking

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Answer 1

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Students have asked these similar questions

Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people, identify several negative aspects if budgets are not implemented properly. Additionally, please discuss in detail how the budgeting process is essential to managers.

Which 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.

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

Answer 2

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 3

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 4

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 8

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

The correct option out of the given choices.

Answer 12

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Answer 13

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 14

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue? a. Participative budgeting b. Budgetary slack c. Strategic planning d. Benchmarking

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Answer to Problem 1QC

Explanation of Solution

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