Question 1

One method for estimating sales revenue is external market research.

Accepted Answer

A) True 
 B)False

Question 2

The most likely example of a discretionary cost item is:

Accepted Answer

A)  taxation 
B)  council rates 
C)  research and development costs 
D)  management salaries 
A)  taxation 
B)  council rates 
C)  research and development costs 
D)  management salaries

Question 3

To motivate managers and employees budgets should be attainable but challenging.

Accepted Answer

A) True 
 B)False

Question 4

Decisions that have long term consequences should be excluded from the budgeting process because there are too many uncertainties that cannot be anticipated.

Accepted Answer

A) True 
 B)False

Question 5

Radical decentralization requires:

Accepted Answer

A)  A contractual approach 
B)  Reward systems based on relative performance evaluation 
C)  Authority to be devolved through the hierarchical layers to lower level employees 
D)  all of the above 
A)  A contractual approach 
B)  Reward systems based on relative performance evaluation 
C)  Authority to be devolved through the hierarchical layers to lower level employees 
D)  all of the above

Question 6

A cost centre in which it is difficult to identify the relationship between inputs and outputs is known as a:

Accepted Answer

A)  Engineered cost centre 
B)  Committed cost centre 
C)  Discretionary cost centre 
D)  Individual cost centre 
A)  Engineered cost centre 
B)  Committed cost centre 
C)  Discretionary cost centre 
D)  Individual cost centre

Question 7

The most likely example of a committed cost item is:

Accepted Answer

A)  employee training 
B)  rent for plant premises 
C)  depreciation on buildings and equipment 
D)  B and C 
A)  employee training 
B)  rent for plant premises 
C)  depreciation on buildings and equipment 
D)  B and C

Question 8

One of the most important principles of the Beyond Budgeting is that every day is different.

Accepted Answer

A) True 
 B)False

Question 9

Employee morale is most likely to be negatively influenced by:

Accepted Answer

A)  setting budgets that are unreasonable or attainable 
B)  changing budgetary targets suddenly 
C)  increased participation in the budgetary process 
D)  a and b 
A)  setting budgets that are unreasonable or attainable 
B)  changing budgetary targets suddenly 
C)  increased participation in the budgetary process 
D)  a and b

Question 10

The relative performance evaluation approach advocated by the Beyond Budgeting philosophy means employees' performance is evaluated against:

Accepted Answer

A)  their own past performance 
B)  peer performance 
C)  benchmarks established by top management 
D)  customized budgetary targets 
A)  their own past performance 
B)  peer performance 
C)  benchmarks established by top management 
D)  customized budgetary targets

Question 11

Typically, support departments such as accounting, human resources and maintenance are classified as cost centres.

Accepted Answer

A) True 
 B)False

Question 12

Employees are recruited for organisations adopting a Beyond Budgeting approach based on their fit with a customer intimacy philosophy.

Accepted Answer

A) True 
 B)False

Question 13

Program budgets originate from private sector organisations which used job costing.

Accepted Answer

A) True 
 B)False

Question 14

Rolling budgets can only be used in conjunction with zero based budgeting.

Accepted Answer

A) True 
 B)False

Question 15

A budgeting approach that requires a cost centre to plan its expenditure specifically around the programs or projects conducted by the cost centre is known as:

Accepted Answer

A)  Discrete budgeting 
B)  Kaizen budgeting 
C)  Flexible budgeting 
D)  Program budgeting 
A)  Discrete budgeting 
B)  Kaizen budgeting 
C)  Flexible budgeting 
D)  Program budgeting

Question 16

Program budgeting requires manager to justify expenditure based on the programs or projects to be conducted.

Accepted Answer

A) True 
 B)False

Question 17

The cash cycle is concerned with:

Accepted Answer

A)  returns on operations 
B)  debt leveraging. 
C)  cash collections and payments 
D)  profitability 
A)  returns on operations 
B)  debt leveraging. 
C)  cash collections and payments 
D)  profitability

Question 18

Beyond Budgeting is characterised by extreme centralisation of decision making.

Accepted Answer

A) True 
 B)False

Question 19

Zero based budgeted can encourage managers to cut costs and focus on desired outcomes.

Accepted Answer

A) True 
 B)False

Question 20

Revenue estimation is typically done using:

Accepted Answer

A)  existing and past data about sales and sales mix 
B)  market analysis 
C)  competitor analysis 
D)  All of the above 
A)  existing and past data about sales and sales mix 
B)  market analysis 
C)  competitor analysis 
D)  All of the above

One method for estimating sales revenue is external market research.

The most likely example of a discretionary cost item is:

To motivate managers and employees budgets should be attainable but challenging.

Decisions that have long term consequences should be excluded from the budgeting process because there are too many uncertainties that cannot be anticipated.

Radical decentralization requires:

A cost centre in which it is difficult to identify the relationship between inputs and outputs is known as a:

The most likely example of a committed cost item is:

One of the most important principles of the Beyond Budgeting is that every day is different.

Employee morale is most likely to be negatively influenced by:

The relative performance evaluation approach advocated by the Beyond Budgeting philosophy means employees' performance is evaluated against:

Typically, support departments such as accounting, human resources and maintenance are classified as cost centres.

Employees are recruited for organisations adopting a Beyond Budgeting approach based on their fit with a customer intimacy philosophy.

Program budgets originate from private sector organisations which used job costing.

Rolling budgets can only be used in conjunction with zero based budgeting.

A budgeting approach that requires a cost centre to plan its expenditure specifically around the programs or projects conducted by the cost centre is known as:

Program budgeting requires manager to justify expenditure based on the programs or projects to be conducted.

The cash cycle is concerned with:

Beyond Budgeting is characterised by extreme centralisation of decision making.

Zero based budgeted can encourage managers to cut costs and focus on desired outcomes.

Revenue estimation is typically done using:

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

One method for estimating sales revenue is external market research.

The most likely example of a discretionary cost item is:

To motivate managers and employees budgets should be attainable but challenging.

Decisions that have long term consequences should be excluded from the budgeting process because there are too many uncertainties that cannot be anticipated.

Radical decentralization requires:

A cost centre in which it is difficult to identify the relationship between inputs and outputs is known as a:

The most likely example of a committed cost item is:

One of the most important principles of the Beyond Budgeting is that every day is different.

Employee morale is most likely to be negatively influenced by:

The relative performance evaluation approach advocated by the Beyond Budgeting philosophy means employees' performance is evaluated against:

Typically, support departments such as accounting, human resources and maintenance are classified as cost centres.

Employees are recruited for organisations adopting a Beyond Budgeting approach based on their fit with a customer intimacy philosophy.

Program budgets originate from private sector organisations which used job costing.

Rolling budgets can only be used in conjunction with zero based budgeting.

A budgeting approach that requires a cost centre to plan its expenditure specifically around the programs or projects conducted by the cost centre is known as:

Program budgeting requires manager to justify expenditure based on the programs or projects to be conducted.

The cash cycle is concerned with:

Beyond Budgeting is characterised by extreme centralisation of decision making.

Zero based budgeted can encourage managers to cut costs and focus on desired outcomes.

Revenue estimation is typically done using:

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