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: What is the major benefit of tying a budget to the overall goals of the compan

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

Q: Question: What is the purpose of a flexible budget? a) To control costs and evaluate performance b)…

A: A flexible budget is designed to adapt to changes in business conditions. The flexible budget takes…

Q: Budgets, Fixed Budgets and Flexible Budgets

A: Fixed Budgeting:The leased Institute of Management Accountants (UK) defines a hard and fast budget…

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: Which of the following is true with respect to the sales budget? Group of answer choices It…

A: The question is asking us to identify the correct statement about the sales budget from the given…

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: Why is it important that a firm prepares a budget and how they analyze the ongoing performance? What…

A: Budgeting is a financial plan that helps the organization in effective utilization of its resources.…

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: How does a manager differentiate when to use capital budgeting versus simple return on investment…

A: The objective of the question is to understand the circumstances under which a manager would choose…

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: Explain what you understand by Budgets, Fixed budgets and Flexible budgets in the context of control…

A: Organizations produce budgets for a variety of purposes, including cost control, performance…

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: What are the benefits of tying a budget to the overall goals of the company?

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

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: Describe your understanding of budgets, both fixed and flexible, in the context of controlling and…

A: Organizations produce budgets for a variety of purposes, including cost control, performance…

Q: What are some characteristics of performance-based budgeting? What are some advantages and…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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: 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: Activity-based budgeting focuses on estimating the costs of activities rather than the costs of…

A: Activity-Based BudgetingABB is a budgeting strategy that focuses on identifying and arranging…

Q: Which of the following should a manager consider when creating a sales budget ? All of the listed…

A: The objective of the question is to identify the factors that a manager should consider when…

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: 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: 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: When would a static budget be effective in evaluating a manager performance

A: We know that budgeting is a planning tool through with entities define a predefined target for…

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: 1. Explain the concept of responsibility accounting and its relation with budgeting.

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

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.