1(a)  "Accounting plays a relatively unimportant role in budgeting." Do you agree? Explain.  (b) What responsibilities does management have in budgeting?   2)What is participative budgeting? What are its potential benefits? What are its potential disadvantages?    3)What is budgetary slack? What incentive do managers have to create budgetary slack?

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: 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: Why might managers find a flexible-budget analysis more informative than a static-budget analysis?

A: Static Budget: Static budget is a fixed budget prepared for a particular period of time without…

Q: Define the terms relative-performance (relative-improvement) contract and rolling financial…

A: Relative performance: It is related to the evaluation of the performance of an individual based on…

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: When a manager is prohibited to exceed its spending from the allowable budget, it may Select the…

A: The question is related to the Budgetory control. When managers are prohibited to exceed its…

Q: If a manager builds slack into a budget, how would that manager estimate revenues and expenses?…

A: Meaning of Budgetary Slack  Budgetary slack is the practice of overestimating the expenses and…

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: It’s a general saying that Companies having proper management of “Future Cash Budgeting” are…

A: Budgets are short-term plans for how firms will function, spend money, and earn income and earnings.…

Q: Budgets are the best management tool, but I think they can cause arguments and disagreements between…

A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Q: 5. (a) The cash budget is indispensable to the financial manager in determining the short-term cash…

A: A cash budget is a forecast of cash inflows and outflows for a given time period. Cash budgets are…

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: Which among the following is not an element of budgeting? a. Budgeting should state the firm’s…

A: Budgets are prepared on weekly, monthly, or yearly basis to make plans for the future which needs to…

Q: "budget performance is a better criterion than past performance for judging managers." Do you agree?…

A: The budget is a statement in which the estimated standards are set according to the needs of the…

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

A: A Budget is a summary of expenses prepared by Companies to find the costs to be incurred on…

Q: Thikk It Through: Errors in a Budgeted Balance Sheet open: Which error has the potential to cause…

A: Budgeted Balance Sheet:-It is a balance sheet where the company decided its assets, liabilities, and…

Q: What are some challenges and weaknesses that a firm may find in the budgeting process?

A: The lack of proper monitoring and review, lack of clear policy and procedures on budgets, poor…

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: Which stakeholders might be more interested in the budget rather than the financial statements? Why?

A: Stakeholders of the organization are the people having some kind of interest vested in the…

Q: what is problems in budgeting and give the examples

A: Answer: Budgeting is the preparation of statement which gives estimation to the expenses of 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: Do you agree with this statement? Explain why or why not

A: Budgeting is the technique which is applied and made by each organization and any business more…

Q: Which is better the old-fashioned way of TOP DOWN budgeting, or the new way of BEYOND BUDGETING and…

A: Budgeting refers to a predefined strategic systematic plan developed by a business enterprise…

Q: Budgeting is essential to businesses, but it is not that simple to implement. What are some…

A: Introduction: Budgeting is thought to be the purchase of important financial decisions that aid in…

Q: 1. How does budgeting provide important information to managers and operating personnel?

A: Budget is like preparing plan for the future process and it includes how efficiently sources or…

Q: 1. What is the difference between strategic and operational plans?

A: Note: I am providing the solution to the first question. Please repost the remaining questions…

Q: Write a essay to explain the purpose of a cash budget and an income statement, and compare and…

A: Introduction: Cash budget can be defined as estimation of inflows & outflows for a particular…

Q: Why does a company's budget need to be closely linked to the needs of good strategy execution? Why…

A: Because insufficient cash and other forms of resources hamper development and inhibit organisational…

Q: Why do successful companies tend to use the bottom-up approach to establish a master budget?

A: The bottom-up approach increases the efficiency and productivity of the employees as the budget is…

Q: 2 Which of the following items does not follow from the adoption of a budget? a. Deterrent to waste…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Which of the following statements is not correct?   The revenue budget is the starting point in…

A: Budget: Budget is the process of identifying, collecting, and summarizing the financial information.…

Q: How can an organization help to reduce the problems caused by budgetary slack?

A: Definition: Budgetary slack: The manager intentionally creates a slack into the budget as to avoid…

Q: Budgeting is the same across different organisations and industries, so organisational strategy,…

A: Budgeting are estimated standards set which acts like an yardstick for respective departments…

Q: 5. Which of the following is not a benefit of budgeting? A. It sets some standards to evaluate…

A: Budgeting: Budgeting is that the method of making a plan to pay your cash.  Benefits of Budgeting…

Q: Which of the following statements is false with respect to a budgeted income statement? Its interest…

A: The budgeted income statement is like other income statements which shows all the expenses and the…

Q: Why are budgets so important for all organizations, and what are some advantages and disadvantages…

A: Budget Meaning: Budgeting allows you to plan the finances of your organization. Budgeting is one of…

Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.