Which of the following describe management's use of a master budget: (Check all that apply). Helps in determining bonuses to managers who meet budgets Helps to place blame on managers who do not meet budgets Helps in planning and control activities Helps analyze differences between actual and budgeted results

Which of the following describe management's use of a master budget: (Check all that apply). Helps in determining bonuses to managers who meet budgets Helps to place blame on managers who do not meet budgets Helps in planning and control activities Helps analyze differences between actual and budgeted results

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5MC: Which approach requires management to justify all its expenditures? A. bottom-up approach B....

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Similar questions

When would a static budget be effective in evaluating a managers performance?
Explain how a budgeted income statement for a service business may be used for both planning and control purposes.
Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
If management is being evaluated on their ability to manage a budget, what can they do to increase cash flow?
If management is being evaluated on their ability to manage a budget, what can they do to decrease cash outflow?
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
Why would managers use a flexible budget? What information does it provide that a regular budget does not?
The actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.
How are standards used in budgetary performance evaluation?
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 true in a bottom-up budgeting approach? a.Supervisors tell departments their budget amount and the departments are free to work within those amounts. b.Departments determine their needs and relate them to the overall goals. c.Every expense needs to be justified. d.Departments budget their needs however they see fit.