Budget motivation C1 For each of the following items 1 through 5, indicate yes if the item is an important budgeting guideline or no if it is not. ___1. Employees should have the opportunity to explain differences from budgeted amounts. _2 .Budgets should include budgetary slack. _3. Employees impacted by a budget should be consulted when it is prepared. _4. Goals in a budget should be set low so targets can be reached. ___5. Budgetary goals should be attainable.

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Answer 1

Textbook Question

Chapter 20, Problem 1QS

Budget motivation C1

For each of the following items 1 through 5, indicate yes if the item is an important budgeting guideline or no if it is not.

_____1. Employees should have the opportunity to explain differences from budgeted amounts.
_____2 .Budgets should include budgetary slack.
_____3. Employees impacted by a budget should be consulted when it is prepared.
_____4. Goals in a budget should be set low so targets can be reached.
_____5. Budgetary goals should be attainable.

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

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indicate yes if the item is an important budgeting guideline orno if it is not. Employees should have the opportunity to explain differences from budgeted amounts.

A) Enter True or False 1. ________ An important part of the planning process is the creation of a budget. 2. ________ Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing. 3. ________ Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget period. 4. ________ The starting point of the planning process is management’s strategic plan or vision of what they want the organization to achieve over the long term. 5. ________ A short-term objective is a specific goal that managers want to achieve in more than a year to reach their long-term goals. 6. ________ Planning is the forward-looking phase of the planning and control process that involves setting long-term objectives and defining short-term…

Answer 2

Textbook Question

Chapter 20, Problem 1QS

Budget motivation C1

For each of the following items 1 through 5, indicate yes if the item is an important budgeting guideline or no if it is not.

_____1. Employees should have the opportunity to explain differences from budgeted amounts.
_____2 .Budgets should include budgetary slack.
_____3. Employees impacted by a budget should be consulted when it is prepared.
_____4. Goals in a budget should be set low so targets can be reached.
_____5. Budgetary goals should be attainable.

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

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Answer 3

Textbook Question

Chapter 20, Problem 1QS

Budget motivation C1

For each of the following items 1 through 5, indicate yes if the item is an important budgeting guideline or no if it is not.

_____1. Employees should have the opportunity to explain differences from budgeted amounts.
_____2 .Budgets should include budgetary slack.
_____3. Employees impacted by a budget should be consulted when it is prepared.
_____4. Goals in a budget should be set low so targets can be reached.
_____5. Budgetary goals should be attainable.

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

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Answer 4

Textbook Question

Chapter 20, Problem 1QS

Budget motivation C1

For each of the following items 1 through 5, indicate yes if the item is an important budgeting guideline or no if it is not.

_____1. Employees should have the opportunity to explain differences from budgeted amounts.
_____2 .Budgets should include budgetary slack.
_____3. Employees impacted by a budget should be consulted when it is prepared.
_____4. Goals in a budget should be set low so targets can be reached.
_____5. Budgetary goals should be attainable.

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

Answer 8

Expert Solution & Answer

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

To identify: Whether an item is important budgeting guideline or not.

Answer 12

Explanation of Solution

1.

Yes, employees should have the opportunity to explain differences from budgeted amounts.

Employees should be given opportunity to explain differences from budgeted amounts as this will motivate the employees. Top management will come to know the discrepancy in their budget. If the discrepancy is genuine then top level management should change the budget.

Hence, it is an important budgeting guideline.

2.

Yes, budget should include budgetary slack.

Budgetary slack is underestimation of revenue or income, or overestimation of expenses in budget. It is done to make it easier for employees to achieve. It makes budget more flexible.

Hence, it is an important budgeting guideline.

3.

Yes, employees impacted by a budget should be consulted when it is prepared.

Employees impacted by the budget should be consulted when it is prepared, as they need to follow that budget. They know the real implications, results of following that budget. They use that budget so they know better than top level management about that budget.

Hence, it is an important budgeting guideline.

4.

No, goals in budget should not be set low to achieve targets.

Setting goals low will de-motivate the employees. They will become lazy and discouraged. So goals should not be set low. They should be such that motivates the employee to work harder and harder..

Hence, it is not an important budgeting guideline.

5.

Yes, budgetary goals should be attainable.

Budgetary goals should be attainable. They should be such that employees should be able to achieve them. They should not be too high as that will discourage the employees and employees will give up. They should not be beyond the capabilities of employees.

Hence, it is an important budgeting guideline.

Answer 13

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