Question :
51. When management seeks to achieve personal departmental objectives that may : 1233872
51. 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
52. 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.
53. 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.
54. Which of the following budgets allow for adjustments in activity levels?
A. Static Budget
B. Continuous Budget
C. Zero-Based Budget
D. Flexible Budget
55. 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
56. A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:
A. flexible budgeting
B. continuous budgeting
C. zero-based budgeting
D. master budgeting
57. McCabe Manufacturing Co.’s static budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible budget would show:
A. variable costs of $49,500 and $25,875 of fixed costs
B. variable costs of $44,000 and $23,000 of fixed costs
C. variable costs of $49,500 and $23,000 of fixed costs
D. variable and fixed costs totaling $75,375
58. Christiansen and Sons’ static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show:
A. the same cost structure in total
B. direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $18,000
C. total variable costs of $136,800
D. direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000
59. A disadvantage of static budgets is that they:
A. start with a clean slate
B. cannot be used by service companies
C. do not show possible changes in underlying activity levels
D. show the expected results of a responsibility center for several levels of activity
60. A series of budgets for varying rates of activity is termed a(n):
A. flexible budget
B. variable budget
C. master budget
D. activity budget
