Question :
51. A formal written statement of management’s plans for the future, : 1246892
51. A formal written statement of management’s plans for the future, expressed in financial terms, is a:
A. gross profit report
B. responsibility report
C. budget
D. performance report
52. The budget process involves doing all the following except:
A. establishing specific goals
B. executing plans to achieve the goals
C. periodically comparing actual results with the goals
D. dismissing all managers who fail to achieve operational goals specified in the budget
53. The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit’s performance is known as a:
A. control center
B. budgetary area
C. responsibility center
D. managerial department
54. The benefits of comparing actual performance of the operations against planned goals include all of the following except:
A. providing prompt feedback to employees about their performance relative to the goal
B. preventing unplanned expenditures
C. helping to establish spending priorities
D. determining how managers are performing against prior years’ actual operating results
55. Budgeting supports the planning process by encouraging all of the following activities except:
A. requiring all organizational units to establish their goals for the upcoming period
B. increasing the motivation of managers and employees by providing agreed-upon expectations
C. directing and coordinating operations during the period
D. improving overall decision making by considering all viewpoints, options, and cost reduction possibilities
56. When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing:
A. budgetary slack
B. padding
C. goal conflict
D. cushions
57. The budgeting process does not involve which of the following activities:
A. specific goals are established
B. Periodic comparison of actual results to goals
C. Execution of plans to achieve goals
D. Increase of sales by increasing marketing efforts.
58. Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem?
A. Setting goals among managers that conflict with one another.
B. Setting goals too tightly making it difficult to meet performance expectation.
C. Allowing employees the opportunity to be a part of the budget process.
D. Allowing goals to be so low that employees develop a “spend it or lose it” attitude.
59. Which of the following budgets allow for adjustments in activity levels?
A. Static Budget
B. Continuous Budget
C. Zero-Based Budget
D. Flexible Budget
60. The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as:
A. flexible budgeting
B. continuous budgeting
C. zero-based budgeting
D. master budgeting
