Question : 11) Planning the performance of the organization, providing a frame : 1186307

 

11) Planning the performance of the organization, providing a frame of reference, and investigating variances are part of the

A) budgetary cycle.

B) cash budget.

C) financing budget.

D) master budget.

E) production budget.

 

12) The master budget embraces the impact of

A) operating and managerial decisions.

B) operating and financing decisions.

C) financing and managerial decisions.

D) operating, managerial, and financing decisions.

E) the differences between the budget and the actual costs, for a given cycle.

13) A master budget

A) includes only financial aspects of a plan and excludes nonfinancial aspects.

B) is an aid to coordinating what needs to be done to implement a plan.

C) includes broad expectations and visionary results.

D) should not be altered after it has been agreed upon.

E) is based upon budget constraints outside of management control.

 

14) Budgets are advantageous because they

A) compel planning that includes the implementation of plans, provide performance criteria, and promote goodwill.

B) provide performance criteria, promote goodwill, and save money.

C) compel planning that includes the implementation of plans, provide performance criteria, and promote communication and coordination within the organization.

D) compel planning that includes the implementation of plans, require organizing, and ensure controlling.

E) ensure that the organization meets its goals.

 

15) Strategic analysis is the

A) comparison of how well an operating budget meets the overall organizational objectives.

B) investigation of external factors that may affect production.

C) evaluation of how well the organization has combined its own capabilities with the relevant features of the competitive environment.

D) analysis of organizational and financial structures of the company.

E) development of contingency plans.

 

 

16) The process of getting a company’s objectives understood and accepted by all departments and functions is known as

A) communication.

B) compilation.

C) continuity.

D) coordination.

E) administration.

17) Long-run planning (strategic plans) involves the preparation of the

A) operating budget.

B) cash budget.

C) budget standards.

D) profit plan.

E) capital budget.

 

18) A limitation of comparing a company’s performance against actual results of last year is that

A) it includes adjustments for future conditions.

B) feedback is no longer a possibility.

C) the benchmark may be unrealistic.

D) past results can contain inefficiencies of the past year.

E) the budgeting time period is set at one year.

 

19) Stretch goals in budgeting tend to

A) decrease line-management participation in attaining corporate goals.

B) increase failure.

C) increase anxiety without motivation.

D) motivate improved performance beyond the status quo.

E) improve communication and coordination.

 

20) Winnie and Pooh have just purchased a small honey manufacturing company that was having financial difficulties. After a brief operating period, they decided that the company’s main problem was lack of any financial planning. The company made a good product and market potential was great.

 

Required:

Explain why a company needs a good budgeting plan. Specifically address the need for a master budget.

 

 

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