4. The following are characteristics of an effective budget, EXCEPT: A. Goals should be attainable. B. Evaluations should be made carefully with opportunities to explain any failures. C. They should be properly applied to avoid negative effects. Customers affected by a budget should be consulted when it is prepared. D.

1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False   2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans. a. True b. False     3. A flexible budget is not designed to change with changes in activity level. a. True b. False   4. The production budget comes before the materials purchases budget. a.True b. False   5. The starting point for the master budget is an assessment of anticipated production next year. a. False b. True

The objectives of budgeting are to:a. Establish specific goals for future operations b. Execute plans to achieve the goalsc. Measure performance by periodic comparison of actual with budgeted results d. All of the above

Which of the following is not the key purpose of budget:     Planning     Controlling and Administering     Reporting and evaluating     Maximizing the profit

What is a good response to: "What do you think are the key components of a successful budgeting process within an organization? Are there any specific challenges that organizations may commonly face when implementing a budget?" The budget should align with the organization's strategic goals and objectives. Understanding what the organization aims to achieve in the short and long term is crucial for creating a budget that supports these goals. Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound to ensure clarity and focus. Reviewing past financial performance helps in understanding trends, cost drivers, and revenue patterns. This historical data is crucial for making informed assumptions. Also, Establishing realistic assumptions about revenues, costs, market conditions, and economic factors is essential. Accurate forecasting techniques help predict future financial performance .A successful budgeting process requires a balanced approach that combines…

1. Describe the difference between a static and a flexible budget 2. Outline how often businesses must report GST 3. Describe a method that can be used to evaluate a budget or financial plan.

Two standards that are established for evaluating budget performance are the cost standard and the efficiency standard. Explain the difference between the two standards and give an example of each.  Why is it important to measure the actual results against both standards?

indicate yes if the item is an important budgeting guideline orno if it is not. Employees should have the opportunity to explain differences from budgeted amounts.

Regarding Budgets, which of the following statements is true? a. A budget is a business plan for the short term. O b. A periodic budget is prepared for a particular period of time. O c. Budgets are based on forecasts. However, the performance of a manager should be compared to a target that reflects the actual environment. O d. All the answers are true.

Describe the various behavioral problems that are associated with setting a budget too "loosely."