Question : MULTIPLE CHOICE 5.              A plan for the future expressed in quantitative : 1369920

MULTIPLE CHOICE

5.              A plan for the future expressed in quantitative terms is called a:

A)cycle

B)budget

C)commentary

D)mathematical model

6.              Which of the following does not affect the cost of preparing a budget?

A)Time and resource requirement

B)The budgeting activities of competitors

C)Adaptability of departments

D)Motivation and behavior of individuals

7.              Budgetary slack is created when:

A)When the difference between actual and budgeted amounts are accidental

B)When the difference between actual and budgeted amounts are based on unforeseen events.

C)When the difference between actual and budgeted amounts are the result of deliberately introduced bias in the budgetary process.

D)When the difference between actual and budgeted amounts are the result of management’s inability to be clairvoyant.

8.              The balanced scorecard approach is successful in reducing budgetary slack because:

A)It uses several different measures to assess how successful a department performed.

B)It uses actual results rather than estimated budgeted figures to measure performance.

C)It uses only those measures that balance the budgeted figures with the actual figures.

D)It uses those measures that make the assets balance with the liabilities and owners’ equity.

9.              The strategy whereby a company uses the current period’s budget as a starting point in preparing next period’s budget is referred to as:

A)mandated budgeting

B)zero-based budgeting

C)incremental budgeting

D)participative budgeting

10.              Ideal standards used in the budgeting process –

A)Do not factor in operating inefficiencies in the budgeting process

B)Allows for small deviations from perfection

C)Is based on ideal working conditions but will permit some slack in operations

D)Requires that deviations between actual and budgeted results be minimized.

11.              A budgeting system that allows individuals who are affected by the budget to have input into the budgeting process is called:

A)mandated budgeting

B)zero-based budgeting

C)incremental budgeting

D)participative budgeting

12.              A budget based on prior year’s budget as a starting point is a:

A)Zero-based budget

B)Prior year budget

C)Incremental budget

D)Mandatory budget

13.              An advantage of a participatory budget is:

A)Management can disregard their employee’s input if necessary.

B)Employees get a percentage of the budgetary slack introduced into the budget.

C)Participatory budgets are typically more accurate than other types of budgets.

D)Employees provide a wealth of information to management and are motivated by the process.

14.              The question of how many units of product to manufacture would be considered when preparing the:

A)master budget

B)project budget

C)strategic budget

D)operating budget