Exam 13: Planning and Budgeting for Strategic Success

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

The process of considering the effect of alternative courses of action on profits, assets and cash flow management is known as:

It is generally agreed in business that once a budget is set it should not be changed.

What feature differentiates Kaizen budgeting from other forms of budgeting?

The primary disadvantage of zero-based budgeting is

A cost center where the relationship between inputs and outputs is readily measurable is known as a discretionary cost center.

With traditional budgeting it is untrue that:

The budgeting system which relies on cost pools and cost drivers, is:

Zero-based budgeting

The Kaizen approach to budgeting was developed in:

The key to managing successfully without budgets, as proposed by the Beyond Budgeting philosophy, is:

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

Strategic budgeting is the process of considering the effect alternative courses of action on profits, assets and cash flow management.

Under which of the following types of budgeting must managers justify their budget requests each year as if prior information did not exist?

The main advantage of using a rolling budget is:

The Beyond Budgeting philosophy does not require the preparation of traditional reports such as income statements and balance sheets.

Which of these is likely to remain a centralised function with a Beyond Budgeting approach?

The statement relating to the budget as a motivator that is not true is:

In zero-based budgeting, managers must justify budget amounts as if no information about prior budgets existed.

Dysfunctional behaviour is more likely in discretionary rather than engineering cost centres.