Question 1

Cost centres are organisational units where the manager is deemed responsible for the costs of the unit.

Accepted Answer

A) True 
 B)False  True

Question 2

A key assumption of strategic budgeting is that there are no interrelationships between the cash cycle and the asset cycle.

Accepted Answer

A) True 
 B)False  False

Question 3

Zero-based budgeting can be used in:

Accepted Answer

A)  Manufacturing environments 
B)  Service industries 
C)  Public sector contexts 
D)  All of the above. 
A)  Manufacturing environments 
B)  Service industries 
C)  Public sector contexts 
D)  All of the above. D

Question 4

In activity based budgeting a budget is developed for each activity.

Accepted Answer

A) True 
 B)False

Question 5

Continuous quality improvements are a characteristic of activity based budgeting.

Accepted Answer

A) True 
 B)False

Question 6

The Beyond Budgeting approach believes that employees are primarily motivated by financial rewards.

Accepted Answer

A) True 
 B)False

Question 7

A cost centre where the relationship between inputs and outputs is NOT readily measurable is known as an engineered cost centre.

Accepted Answer

A) True 
 B)False

Question 8

Budgetary mismanagement can be described as:

Accepted Answer

A)  When underlying assumptions vary from actual events 
B)  Minimal consideration for impacts on other parts of the organisation 
C)  Not trying to achieve above budget when only meeting budget is rewarded 
D)  All of the above 
A)  When underlying assumptions vary from actual events 
B)  Minimal consideration for impacts on other parts of the organisation 
C)  Not trying to achieve above budget when only meeting budget is rewarded 
D)  All of the above

Question 9

To ensure proper accountability it is essential that once a budget is set it should not be changed.

Accepted Answer

A) True 
 B)False

Question 10

A key question that relates to the asset cycle is:

Accepted Answer

A)  Will an increase in cost impact competitive advantage? 
B)  What are the returns generated by investment in the business? 
C)  What is the borrowing capacity of the organisation? 
D)  What is the cost of holding inventory? 
A)  Will an increase in cost impact competitive advantage? 
B)  What are the returns generated by investment in the business? 
C)  What is the borrowing capacity of the organisation? 
D)  What is the cost of holding inventory?

Question 11

When an organisation implements activity-based budgeting, managers must identify activities for:

Accepted Answer

A)  Production activities 
B)  Support activities 
C)  Both production activities and support activities 
D)  Neither production activities nor support activities, as long as cost drivers are clearly specified 
A)  Production activities 
B)  Support activities 
C)  Both production activities and support activities 
D)  Neither production activities nor support activities, as long as cost drivers are clearly specified

Question 12

In strategic budgeting the income cycle corresponds to the:

Accepted Answer

A)  Statement of Profit or Loss 
B)  Cash Flow Statement 
C)  Statement of Changes in Owners' Equity 
D)  Statement of Financial Position 
A)  Statement of Profit or Loss 
B)  Cash Flow Statement 
C)  Statement of Changes in Owners' Equity 
D)  Statement of Financial Position

Question 13

To achieve the best results for the organisation, budgets should be designed to promote cooperation amongst employees.

Accepted Answer

A) True 
 B)False

Question 14

One means of responding to a fast based business environment is to adopt rolling budgets.

Accepted Answer

A) True 
 B)False

Question 15

When managers use Kaizen budgeting, which of the following is (are) explicitly embedded in the budget? I$\quad $Costreduction goals
II$\quad $Quality improvement goals
III$\quad $Anticipated price reductions

Accepted Answer

A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III 
A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III

Question 16

The starting point for budgeting should be estimating overheads because companies need to know much cash to borrow to cover their expenses.

Accepted Answer

A) True 
 B)False

Question 17

The statement that is true in relation to engineered cost centres is:

Accepted Answer

A)  Planning is more difficult in engineered cost centres than in discretionary cost centres 
B)  The research and development department of an organisation is likely to be an engineered cost centre 
C)  Service departments where there are repetitive activities are performed are more likely to be engineered cost centres 
D)  It is difficult to link the service or product to the cost centre. 
A)  Planning is more difficult in engineered cost centres than in discretionary cost centres 
B)  The research and development department of an organisation is likely to be an engineered cost centre 
C)  Service departments where there are repetitive activities are performed are more likely to be engineered cost centres 
D)  It is difficult to link the service or product to the cost centre.

Question 18

Zero based budgeting requires managers to justify budgeted expenditure as if no information about budgets or costs from prior budget cycles was available.

Accepted Answer

A) True 
 B)False

Question 19

The starting point for program budgeting is last year's expenditure.

Accepted Answer

A) True 
 B)False

Question 20

Beyond Budgeting advocates setting aspirational goals for continuous relative improvement and rewarding success based on relative performance.

Accepted Answer

A) True 
 B)False

Cost centres are organisational units where the manager is deemed responsible for the costs of the unit.

A key assumption of strategic budgeting is that there are no interrelationships between the cash cycle and the asset cycle.

Zero-based budgeting can be used in:

In activity based budgeting a budget is developed for each activity.

Continuous quality improvements are a characteristic of activity based budgeting.

The Beyond Budgeting approach believes that employees are primarily motivated by financial rewards.

A cost centre where the relationship between inputs and outputs is NOT readily measurable is known as an engineered cost centre.

Budgetary mismanagement can be described as:

To ensure proper accountability it is essential that once a budget is set it should not be changed.

A key question that relates to the asset cycle is:

When an organisation implements activity-based budgeting, managers must identify activities for:

In strategic budgeting the income cycle corresponds to the:

To achieve the best results for the organisation, budgets should be designed to promote cooperation amongst employees.

One means of responding to a fast based business environment is to adopt rolling budgets.

When managers use Kaizen budgeting, which of the following is (are) explicitly embedded in the budget? I $\quad$ Costreduction goals II $\quad$ Quality improvement goals III $\quad$ Anticipated price reductions

The starting point for budgeting should be estimating overheads because companies need to know much cash to borrow to cover their expenses.

The statement that is true in relation to engineered cost centres is:

Zero based budgeting requires managers to justify budgeted expenditure as if no information about budgets or costs from prior budget cycles was available.

The starting point for program budgeting is last year's expenditure.

Beyond Budgeting advocates setting aspirational goals for continuous relative improvement and rewarding success based on relative performance.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 5: Planning Budgeting and Behaviour

Cost centres are organisational units where the manager is deemed responsible for the costs of the unit.

A key assumption of strategic budgeting is that there are no interrelationships between the cash cycle and the asset cycle.

Zero-based budgeting can be used in:

In activity based budgeting a budget is developed for each activity.

Continuous quality improvements are a characteristic of activity based budgeting.

The Beyond Budgeting approach believes that employees are primarily motivated by financial rewards.

A cost centre where the relationship between inputs and outputs is NOT readily measurable is known as an engineered cost centre.

Budgetary mismanagement can be described as:

To ensure proper accountability it is essential that once a budget is set it should not be changed.

A key question that relates to the asset cycle is:

When an organisation implements activity-based budgeting, managers must identify activities for:

In strategic budgeting the income cycle corresponds to the:

To achieve the best results for the organisation, budgets should be designed to promote cooperation amongst employees.

One means of responding to a fast based business environment is to adopt rolling budgets.

When managers use Kaizen budgeting, which of the following is (are) explicitly embedded in the budget? I \quad Costreduction goals II \quad Quality improvement goals III \quad Anticipated price reductions

The starting point for budgeting should be estimating overheads because companies need to know much cash to borrow to cover their expenses.

The statement that is true in relation to engineered cost centres is:

Zero based budgeting requires managers to justify budgeted expenditure as if no information about budgets or costs from prior budget cycles was available.

The starting point for program budgeting is last year's expenditure.

Beyond Budgeting advocates setting aspirational goals for continuous relative improvement and rewarding success based on relative performance.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

When managers use Kaizen budgeting, which of the following is (are) explicitly embedded in the budget? I $\quad$ Costreduction goals II $\quad$ Quality improvement goals III $\quad$ Anticipated price reductions