When a company develops and implements a master budget, there is a tendency to incentivize adherence to the goal with bonuses or by tying the employee compensation plans to the achievement of the budget goals. What are some opportunities and risks of these financial incentive programs

Q: Managers should be closely involved in preparing their responsibility accounting budget. How true is…

A: Generally, managers should be involved in preparing their responsibility accounting budget.

Q: Many accountants believe that the most important benefit of the master budgeting process is the…

A: Master budget: The master budget is the core budget that describes the full process of budget. This…

Q: if an organisation is experiencing budget difficulty, what steps are suggested to improve compliance…

A: Budget is a financial tool used in planning, programming and control of business activity for a…

Q: 2.Based from the given choices below, peruse which is not considered to be a primary goal of…

A: Budgeting is the act of estimating revenues and expenses for a certain time period in the future.…

Q: All of the following are true statements about the role of budgets and budgeting EXCEPT that A) a…

A: Budget provides organization short term goals to its members.  It will help management  to allocate…

Q: Explained how the company's budgetary control system could be revised to improve its effectiveness.

A: The company is work on the budget to be initially made with a view to follow the pattern…

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: ‘Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: A budgeting system helps an organization to plan and decide the amount to be spent in a particular…

Q: hy is it important to comply with ethical provisions and be transparent in budgeting?

A: Budgeting refers to the process of formulating a plan which describes the ways and zones under which…

Q: Define the role of the budget in the public sector. Describe Performance Based Budgeting and give an…

A: The process of budget is basically the allocation of resources to different category, based on the…

Q: Which of the following is not an accepted principle of effective budgeting?   A• Flexibility B• Top…

A: Budgeting refers to the plan that an entity makes and how it is going to spend the money. The budget…

Q: Since budgets affect many people in an organization, they can have significant behavioural…

A: Budgetary slack: The difference in the expected and the budgeted revenue/ expenditure is planned in…

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: Budgets

A: following statements is true.

Q: Which of the following statements are TRUE? 1. Responsibility accounting attempts to assign blame…

A: Statement I: Responsibility accounting helps identify and track costs that specific managers can…

Q: PLEASE ANSWER ALL TRUE OR FALSE 18. The basic idea behind responsibility accounting is that each…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: With one exception, the following objectives are accomplished by budgeting. Which of these…

A: Budgeting is to make planning for the future and budget provides the direction and guidelines for…

Q: How can a company’s board of directors use the budget to influence the future direction of the firm?

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

Q: Required: Identify the problems that appear to exist in the company’s budgetary control system and…

A: Budgetary Control System:- It is a system in which the actual income and expenditure of the company…

Q: CE Company reported the following information for 2022: Budgeted sales $1225000 $1310000 All sales…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following is not a benefit of participative budgeting? Multiple Choice O O O O It…

A: Participative budgeting, also called as bottom-up budgeting, involves employees in the budgeting…

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 human behavior problems that might arise if budget goals are set too tightly. What…

A: Budgeting is an essential part of financial planning for businesses, and it involves setting goals…

Q: Which of the following is not the direct benefit of the budgeting process?   Identification of…

A: The process of budgeting involves the estimation of the costs and revenues of the entity for future…

Q: How are the master budget and the production budget related? How does the understanding of the…

A: The master budget is a comprehensive financial plan that outlines a company's financial goals and…

Q: How might a company benefit by sharing its own internal budget information with other companies?

A: Budget is the expression of future costs and revenues that business estimates.

Q: Which one of the following is not considered to be a benefit of participative budgeting? When…

A: Budgeting - Budgeting is the estimation made by the managers of the organization based on the past…

Q: Budgets need to be fair and attainable for employees to consider the budget important in their…

A: The objective of the question is to identify which of the given situations can potentially lead to…

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: Explain what responsibility accounting is and how budgets are used in responsibility accounting. How…

A: Responsibility accounting: Responsibility accounting includes accounting and forecasting. It assists…

Q: How can an organization prevent budgetary slack in the budgeting process since the bonuses of…

A: Budgetary slack can be prevented by thr following ways :- 1) By having a small group of managers for…

Q: Which of the following is a feature that distinguishes a traditional performance budget from other…

A: Quantitative performance objectives for agencies and departments is a feature that distinguishes a…

Q: Which of the following is not an advantage of budgeting? a) Forces managers to plan b) Provides…

A: Budget: A budget is an estimation of revenue and expenses over a specified period of time and is…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.