QUESTION 57True Love Inc., is pretty heavy into the use of budgets. Which of the following statements is TRUE of the budgeting process of True-Love and in fact, any company that usesbudgets?O Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated.O Ha company carefully plans for its future, there will be no need to make modifications during the budget periodO R shows the actual performance of the businessO It is a continuous process that encourages communication.QUESTION S8Opportunity cost is the benefitO given up by purchasing goods at a price lower than its total manufacturing costO gven up by choosing an alternate course of actionO received by selling goods on behalf of another divisionO received by seling goods to one of the other divisions within the companyQUESTION 59Last year. T-Bal Company spent $36.000 on employee training to improve customer service. The cost and time spent on traning is considered anO opportunity costO relevant costOavoidable costsO sunk cost

A company plans its future financial activities in the form of a budget.

QUESTION 57 True Love Inc., is pretty heavy into the use of budgets. Which of the followingr statements is TRUE of the budgeting process of frue-Love and. in fact, any company that uses budgets? O Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated. OHa company carefully plans for its future. there will be no need to make modifications during the budget period It shows the actual performance of the business It is a continuous process that encourages communication. QUESTION SA Opportunity cost is the benefit Ogven up by purchasing goods at a price lower than its total manufachuring cost O given up by choosing an alternate course of action O received by selling goods on behalf of another division O received by selling goods to one of the other divisions within the company QUESTION 59 Last year. T-Bal Company spent 530.000 on employee training to improve customer service. The cost and time spent on traning is considered an O opportunty cost relevant cost avoidable costs

QUESTION 57 True Love Inc., is pretty heavy into the use of budgets. Which of the followingr statements is TRUE of the budgeting process of frue-Love and. in fact, any company that uses budgets? O Managers and employees are motivated to accept the budget's goals because they enjoy having their work monitored and evaluated. OHa company carefully plans for its future. there will be no need to make modifications during the budget period It shows the actual performance of the business It is a continuous process that encourages communication. QUESTION SA Opportunity cost is the benefit Ogven up by purchasing goods at a price lower than its total manufachuring cost O given up by choosing an alternate course of action O received by selling goods on behalf of another division O received by selling goods to one of the other divisions within the company QUESTION 59 Last year. T-Bal Company spent 530.000 on employee training to improve customer service. The cost and time spent on traning is considered an O opportunty cost relevant cost avoidable costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

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true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)
QUESTION 22 Which of the following are reasons to generate a pro forma cash budget on a monthly basis? a. An income statement indicates a profit but the budget may indicate a loss. b. A business can monitor the actual cash on hand. c. Sales are recognized as income when the sale is made. d. All of the above.
Which of the following statements is true about a cash budget? Question 35 options: Cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product. Cash budget summarizes the cash flows into and out of a firm over a period of time. Cash budget focuses on the importance of maximizing a product’s per unit contribution. Cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business’s produce.
Asumme the company has always used a ‘traditional’ incremental approach towards building its budgets to plan for the future. The company is now concerned that this may not be appropriate in the current turbulent political and economic environment which he believes may last for a number of years. As a result, he has also asked you for advice about how he might adopt a more flexible planning approach without losing financial control. Critically review the current budget preparation process. Critically analyse the potential advantages and disadvantages of adopting a ‘beyond budgeting’ approach instead. Provide Cameron with a recommendation(s) for the future based on your findings.
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What are some of the benefits of a self-imposed budget? Choose all that apply. Top-down mentality Inclusiveness of all managers Fear of punishment tends to motivate Budgets are more realistic More autonomy Greater accuracy Lowers employee morale 10 step cycle Better motivation
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Which of the following statements about top down budgeting is true? Multiple Choice It is an appropriate method to use in times of financial stress. Eliminates a manager's excuse who tries to claim that his budget is unrealistic The budget process is often more efficient. It allows senior management to better prioritize resources to propelling the growth of the company
Why is it important that a firm prepares a budget and how they analyze the ongoing performance? What advantages does a business have by going through the budget process?