Question 1

Enterprise resource planning (ERP)systems help managers budget for nonmanufacturing costs.

Accepted Answer

A) True 
 B)False

Question 2

How do managers use the master budget from the evolution of operating and financing decisions that manager make during the budget process?

Accepted Answer

The master budget is the plan the compan

Question 3

Why do managers want to use a cash budget since they already have an operating income budget?

Accepted Answer

The operating plan does not guarantee th

Question 4

________ is meshing and balancing all aspects of production or service and all departments in a company in the best way for the company to meet its goals.

Accepted Answer

A) Budget 
B) Strategy 
C) Operations 
D) Coordination 
E) Communication 
A) Budget 
B) Strategy 
C) Operations 
D) Coordination 
E) Communication

Question 5

Which of the following is true about budgetary slack?

Accepted Answer

A) Budgeting is most effective when lower-level managers actively participate and meaningfully engage in the budgeting process. 
B) Subordinates never "play games" and build in budgetary slack. 
C) Budgetary slack fails to provide managers with a hedge against unexpected adverse circumstances. 
D) One approach to dealing with budgetary slack is to avoid benchmark data when setting the budget. 
E) Rolling budgets is another approach to reduce budgetary slack. 
A) Budgeting is most effective when lower-level managers actively participate and meaningfully engage in the budgeting process. 
B) Subordinates never "play games" and build in budgetary slack. 
C) Budgetary slack fails to provide managers with a hedge against unexpected adverse circumstances. 
D) One approach to dealing with budgetary slack is to avoid benchmark data when setting the budget. 
E) Rolling budgets is another approach to reduce budgetary slack.

Question 6

________ specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Accepted Answer

A) Budget 
B) Strategy 
C) Coordination 
D) Communication 
E) Pro forma statements 
A) Budget 
B) Strategy 
C) Coordination 
D) Communication 
E) Pro forma statements

Question 7

Managers in multinational companies find budgeting to be a helpful tool in each of the following conditions except:

Accepted Answer

A) known fluctuations in currencies. 
B) uncertain expected environments. 
C) familiar political environments. 
D) comparing actual to budgets in volatile conditions. 
E) the comparison of budgets to actual to economic environments. 
A) known fluctuations in currencies. 
B) uncertain expected environments. 
C) familiar political environments. 
D) comparing actual to budgets in volatile conditions. 
E) the comparison of budgets to actual to economic environments.

Question 8

Budgets coupled with responsibility accounting provide feedback to top management about the performance relative to the budget of different responsibility center managers.

Accepted Answer

A) True 
 B)False

Question 9

The manager is accountable for only costs in:

Accepted Answer

A) cost centers. 
B) profit centers. 
C) revenue centers. 
D) responsibility centers. 
E) organizational centers. 
A) cost centers. 
B) profit centers. 
C) revenue centers. 
D) responsibility centers. 
E) organizational centers.

Question 10

A ________ is the quantitative expression of a proposed plan of action by management for a specified period and helps managers coordinate the activities that need to be done to implement the plan.

Accepted Answer

A) pro forma statements 
B) strategy 
C) budget 
D) coordination 
E) communication 
A) pro forma statements 
B) strategy 
C) budget 
D) coordination 
E) communication

Question 11

Aside from currency issues what do managers at multinational companies need to understand about different countries in which they operate?

Accepted Answer

Besides currency issues,managers at mult

Question 12

Why are rolling budgets always available for a specified future period?

Accepted Answer

The manager always updates the rolling b

Question 13

How do managers at international companies reduce the possible negative impact on performance caused by unfavorable exchange rate movements?

Accepted Answer

To reduce the negative impact

Question 14

An equipment supply manager at a large outlet needs to prepare a Production Budget.The budgeted unit sales amount to 5,200 units.The ending finished goods inventory shows 700 units,and the beginning finished goods inventory shows 1,000 units.
Required
Compute the value of the beginning inventory on the Production Budget.

Accepted Answer

A) 6,500 units 
B) 5,500 units 
C) 7,200 units 
D) 4,800 units 
E) 5,200 units 
A) 6,500 units 
B) 5,500 units 
C) 7,200 units 
D) 4,800 units 
E) 5,200 units

Question 15

________ is a part,segment,or subunit of an organization whose manager is accountable for a specified set of activities.

Accepted Answer

A) Revenue center 
B) Responsibility center 
C) Responsibility accounting 
D) Organization structure 
E) Cost center 
A) Revenue center 
B) Responsibility center 
C) Responsibility accounting 
D) Organization structure 
E) Cost center

Question 16

What is the purpose of using financial planning models in sensitivity analysis?

Accepted Answer

Managers use financial planning models t

Question 17

When badly managed,budgeting can lead to:

Accepted Answer

A) better employee commitment. 
B) better employee accountability. 
C) better communication. 
D) increased honesty at the firm. 
E) game-playing and budgetary slack. 
A) better employee commitment. 
B) better employee accountability. 
C) better communication. 
D) increased honesty at the firm. 
E) game-playing and budgetary slack.

Question 18

________ is the degree if influence that a specific manager has over costs,revenues,or related items for which he or she is responsible.

Accepted Answer

A) Controllability 
B) Controllable cost 
C) Cost center 
D) Responsibility accounting 
E) Budgetary slack 
A) Controllability 
B) Controllable cost 
C) Cost center 
D) Responsibility accounting 
E) Budgetary slack

Question 19

Which of the following is true about ethics related to stretch targets?

Accepted Answer

A) All managers regard budgets in a positive manner. 
B) Many managers regard budgets in a negative manner. 
C) Top managers convince their subordinates that the budget is not a tool designed to help them set and reach goals. 
D) Budgets are used to notify managers of layoffs,strikes,and upcoming organization downsizing. 
E) There are no benefits to budgets. 
A) All managers regard budgets in a positive manner. 
B) Many managers regard budgets in a negative manner. 
C) Top managers convince their subordinates that the budget is not a tool designed to help them set and reach goals. 
D) Budgets are used to notify managers of layoffs,strikes,and upcoming organization downsizing. 
E) There are no benefits to budgets.

Enterprise resource planning (ERP)systems help managers budget for nonmanufacturing costs.

How do managers use the master budget from the evolution of operating and financing decisions that manager make during the budget process?

Why do managers want to use a cash budget since they already have an operating income budget?

________ is meshing and balancing all aspects of production or service and all departments in a company in the best way for the company to meet its goals.

Which of the following is true about budgetary slack?

________ specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Managers in multinational companies find budgeting to be a helpful tool in each of the following conditions except:

Budgets coupled with responsibility accounting provide feedback to top management about the performance relative to the budget of different responsibility center managers.

The manager is accountable for only costs in:

A ________ is the quantitative expression of a proposed plan of action by management for a specified period and helps managers coordinate the activities that need to be done to implement the plan.

Aside from currency issues what do managers at multinational companies need to understand about different countries in which they operate?

Why are rolling budgets always available for a specified future period?

How do managers at international companies reduce the possible negative impact on performance caused by unfavorable exchange rate movements?

________ is a part,segment,or subunit of an organization whose manager is accountable for a specified set of activities.

What is the purpose of using financial planning models in sensitivity analysis?

When badly managed,budgeting can lead to:

________ is the degree if influence that a specific manager has over costs,revenues,or related items for which he or she is responsible.

Which of the following is true about ethics related to stretch targets?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 12: Master Budget and Responsibility Accounting

Enterprise resource planning (ERP)systems help managers budget for nonmanufacturing costs.

How do managers use the master budget from the evolution of operating and financing decisions that manager make during the budget process?

Why do managers want to use a cash budget since they already have an operating income budget?

________ is meshing and balancing all aspects of production or service and all departments in a company in the best way for the company to meet its goals.

Which of the following is true about budgetary slack?

________ specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Managers in multinational companies find budgeting to be a helpful tool in each of the following conditions except:

Budgets coupled with responsibility accounting provide feedback to top management about the performance relative to the budget of different responsibility center managers.

The manager is accountable for only costs in:

A ________ is the quantitative expression of a proposed plan of action by management for a specified period and helps managers coordinate the activities that need to be done to implement the plan.

Aside from currency issues what do managers at multinational companies need to understand about different countries in which they operate?

Why are rolling budgets always available for a specified future period?

How do managers at international companies reduce the possible negative impact on performance caused by unfavorable exchange rate movements?

________ is a part,segment,or subunit of an organization whose manager is accountable for a specified set of activities.

What is the purpose of using financial planning models in sensitivity analysis?

When badly managed,budgeting can lead to:

________ is the degree if influence that a specific manager has over costs,revenues,or related items for which he or she is responsible.

Which of the following is true about ethics related to stretch targets?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters