Question : 38.A formal statement of future plans, usually expressed in monetary : 1258662

38.A formal statement of future plans, usually expressed in monetary terms, is a:   

A. Variance report.

B. Position statement.

C. Budget.

D. Prospectus.

E. Variance analysis.

39.The process of planning future business actions and expressing them as a formal plan is called:   

A. Budgeting.

B. Cost accounting.

C. Managerial accounting.

D. Variance analysis.

E. Standard cost analysis.

40.All of the following are necessary for budgets to be effective except:   

A. Goals should be attainable.

B. Employees affected by a budget should be consulted when it is prepared.

C. Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.

D. Managers must be aware of potential negative outcomes of budgeting, such as budgetary slack.

E. All budgeted amounts must be spent to ensure that budgets aren’t reduced for the next period.

41.Which of the following is not a result of following a well-designed budgeting process?    

A. Improved decision-making processes.

B. Improved performance evaluations.

C. Improved coordination of business activities.

D. Assurance of future profits.

E. Improved communication of management’s action plans.

42.Which of the following is a benefit derived from budgeting?    

A. Budgeting focuses management’s attention on past performance.

B. Budgeting avoids needing industry and economic factors in decision making.

C. Budgeting provides a basis for evaluating performance.

D. Budgeting avoids the need for incentives to improve employee performance.

E. Budgeting eliminates the need for coordination across departments.

43.Which of the following statements about budgeting is false?   

A. Budgeting is an aid to planning and control.

B. Budgets create standards for performance evaluation.

C. Budgets help coordinate the activities of the entire organization.

D. Budgeting forces managers to think ahead and formalize future objectives.

E. The master budget should only be prepared by top management.

44.A budget is best described as:   

A. A formal statement of a company’s future plans usually expressed in monetary terms.

B. A master control device.

C. An informal statement of company’s future plans usually expressed in monetary terms.

D. The most crucial component of a company’s evaluation process.

E. The minimum acceptable performance level.

45.The central guidance of the budget process is the responsibility of the:   

A. Chief Accounting Officer.

B. Chief Executive Officer (CEO).

C. Chief Financial Officer (CFO).

D. Budget Committee.

E. Board of Directors.

46.Budgets that are periodically revised and have new periods added to replace those that have lapsed are called:   

A. Production budgets.

B. Sales budgets.

C. Cash budgets.

D. Rolling budgets.

E. Capital expenditures budgets.

47.In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2015 budget cover?   

A. February 2015-January 2016

B. March 2015-February 2016

C. December 2015-November 2016

D. April 2015-March 2016

E. January 2016-December 2016