Answered: Suggest, as a budget accountant, what…

Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1MC: Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing...

See similar textbooks

Related questions

Q: Which of the following statements about budgeting is incorrect? a. Budgets provide direction and…

A: a ) Budgets provide direction and coordination. This statement is correct because budgeting…

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: Why is participative budgeting often an effective management tool?

Q: When higher level management fails to review self-imposed budgets, which one of the following is…

A: The budgeting process begins where the previous accounting period ends and the new…

Q: Explain the value of utilizing a balance sheet to make a budget adjustment. What is the danger?

A: The budgeted balance sheet is usually prepared at the start of the fiscal year. The organization…

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: 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: 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: What are some of the risks of failing to create and manage budgets?

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: Please provide a brief description of the types of human behavior issues that might develop if…

A: The Question explains about the types of human behavior issues that might develop if budget targets…

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

A: Budgeting is defined as the procedure of planning the manner in which the work to be conducted and…

Q: indicate yes if the item is an important budgeting guideline orno if it is not. Employees impacted…

A: Budget: It is an estimated financial plan for the future time period. It is used by management as an…

Q: Which of the following is not a part of budgeting?A. planningB. finding bottlenecksC. providing…

A: Budgeting is an important process in management accounting. Budgets means estimates or forecasts…

Q: Responsibility reports should be simple, show variances between the budgeted and actual amounts of…

A: Responsibility reports is a system of preparation of reports for each level of responsibility in the…

Q: conditions when ratio analysis cannot be an efficient method for prudent financial decision making.

A: Introduction Ratio Analysis is a decision making tool used by management to analyse and compare the…

Q: Sometime the budgetary performance is seems to be a misleading and less effective if it is consider…

A: Budget: It is an estimated and effective way of the utilization of funds for the financial control…

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: Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs…

A: Creating an extra gap in the budget is known as budgetary slack which refers to knowingly…

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: Briefly describe the type od human behavior problems that might arise if budget goals are set too…

A: Budgeting is defined as the process or procedure, which used to prepare the plan regarding the…

Q: What are the major objectives of budgeting? Briefly describe the type of human behavior problems…

A: 1. Objectives of budgeting: Anticipation of future financial condition and future needs for funds…

Q: Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs…

A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…

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

A: Budgeting is very important process in managing future financing affairs of a business enterprise.…

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: How do I identify and explain the classic budgeting error that Harlow apparently incorporated into…

A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead

Q: What limits the usefulness to managers of fixed budget performance reports?

Q: Which of the following statements is false about budgeted income statement and budgeted balance…

A: Budgeted income statement shows budgeted income and expense of the business and at the end it shows…

Q: Ethical Considerations. Budget projections always involve a degree of judgment because managers can…

A: Budget may be defined as the estimated statement prepared for the estimation of amount of revenues…

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

A: Answer - Budgetary slack refers to the deliberate adjustment of additional cash outlays in…

Q: What are some of the dangers associated with failing to develop and manage budgets?

A: The following are the dangers associated with failing to set and manage budgets: 1) Incorrect…

Q: Which of the following statements is false? (You may select more than one answer.)a. A flexible…

A: A flexible budget is: Used for control purpose. Prepared at the end of the period. A static budget…

Q: What behavioral problems are associated with setting a budget too loosely

A: Budget: Budget is an effective tool to present the estimated actions for future time period. It…

Q: What are some of the dangers associated with failing to design and manage budgets properly?

A: Preparation of the budget helps the business entities in achieving their goals/ objectives. Budgets…

Q: Explain the different reasons why a manager might submit a biased budget estimate.

A: A budget is a financial plan made by the company for a definite period such as for months or years.…

Q: if you identify discrepancies, budget variances, unusual features or have queries, what should you…

A: Budget variance means that the actual cost are either higher or lower than the projected cost.

Q: budget performance is abetter critical than past performance for judging managers" do you agree…

A: For judging the current performance we need a benchmark against which we can see and compare and…

Q: Two standards that are established for evaluating budget performance are the cost standard and the…

A: Ans. Cost standard measures deviation between the actual cost and standard cost. Whereas,…

Q: Which of the following statements is true of performance reporting? A. Responsibility reports…

A: Performance reporting refers to a process of reporting the performance of any particular thing. It…

Q: If a manager is not able to meet the budget and it has been ________________ , the manager can…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: indicate yes if the item is an important budgeting guideline orno if it is not. Employees should…

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

A: If too tightly budgets are set then the employees are unable to meet targets because they are…

Q: Which one of the following is the incorrect statement regarding Budgets? Select one: a. Budget is…

A: Budgets are the estimates that are being made for future period of time. These helps in comparing…

Q: Which of the following is not a benefit of budgeting It is a basis for performance evaluation.

A: A budget is a forecast of the financial position and the results of the company for the period of…

Question

100%

Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs that do not represent their best estimate or expectations of what will actually occur and Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.
1 i. Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs that do not represent their best estimate or expectations of what will actually occur. ii. Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.
Which of the following statements about budgeting is incorrect? a. Budgets provide direction and coordination b. Budgets motivate staff c. A budget is a financial plan. d. A budget looks back and review performance.
Which of the following statements is true? I. To provide a basis for comparison of actual performance is one primary purpose of budgeting. II. Ineffective budgets and/or control systems are characterized by the use of budgets as a planning tool only and disregarding them for control purposes III. For better management acceptance, the flow of data to be used for budgeting should begin with Lower levels of management IV. Actual results need not be compared with plan, since the process ends after budget is approved.
indicate yes if it describes a potential benefit of budgeting orno if it describes a potential negative outcome of budgeting. Budgets are useful in assigning blame for unexpected results.
Which of the following statements is true? I. To provide a basis for comparison of actual performance is one primary purpose of budgeting. II. Ineffective budgets and/or control systems are characterized by the use of budgets as a planning tool only and disregarding them for control purposes III. For better management acceptance, the flow of data to be used for budgeting should begin with Lower levels of management IV. Actual results need not be compared with plan, since the process ends after budget is approved. a. I and II b. II and III c. III and IV d. None of the above
Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
Identify the false statement related to elements of budgeting: a. System of reporting should be made optional. b. Availability of working capital should be ensured. c. Good system of accounting should be maintained. d. Authority and responsibility should be properly fixed
What are the difficulties that might face by management accountant in budgeting process?
Explain the different reasons why a manager might submit a biased budget estimate.
The accountant perspective of the budget views the budget as a rational decision-making tool? True or false
Which of the following is not the key purpose of budget: Planning Controlling and Administering Reporting and evaluating Maximizing the profit