Which of the following statements about budgets is FALSE ?   Budgets help the company manage risks . Incurring actual costs at a level in excess of the amount in the flexible budget for the actual level of operation always results in an unfavorable variance Budgets help move the company from an informal reactive style to a more formal proactive style of management Incurring actual costs at a level in excess of the amount planned in the original static budget always results in a favorable variance . Budgets help establish responsibility and evaluate managers performance .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements about budgets is FALSE ?

 

Budgets help the company manage risks .

Incurring actual costs at a level in excess of the amount in the flexible budget for the actual level of operation always results in an unfavorable variance

Budgets help move the company from an informal reactive style to a more formal proactive style of management

Incurring actual costs at a level in excess of the amount planned in the original static budget always results in a favorable variance .

Budgets help establish responsibility and evaluate managers performance .

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