Question :
61. The benefits of comparing actual performance of the operations against : 1251668
61. 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
62. 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
63. 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
64. 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 in sales by increasing marketing efforts.
65. 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.
66. Which of the following budgets allow for adjustments in activity levels?
A. Static Budget
B. Continuous Budget
C. Zero-Based Budget
D. Flexible Budget
67. 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
68. 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
69. Scott Manufacturing Co.’s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 units of production, a flexible budget would show:
A. variable costs of $52,800 and $27,600 of fixed costs
B. variable costs of $44,000 and $23,000 of fixed costs
C. variable costs of $52,800 and $23,000 of fixed costs
D. variable and fixed costs totaling $67,000
70. Bob 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
