171. Volume variances examine differences between the __flexible___budget and the ___static___ budget.
172. The budgeting that recognizes interdependencies among departments is called___activity-based__budgeting.
173. Activity-based budgets also focus on ____business___ processes.
174. When managers intentionally underestimate or overestimate revenues and costs it is called budgetary ___slack___ .
175. The quantitative expression of a plan stated in either physical or financial terms or both is called a:
a. Cost of goods sold statement
b. Financial statement
c. Budget
d. Cost of goods manufactured statement
176. Which of the following is NOT a component of the master budget?
a. Sales Budget
b. Capital Budget
c. Cost of Goods Sold Budget
d. Budget to Actual Variance Analysis
177. Which of the following statement is correct regarding a continuous budget?
a. The budget is prepared for a one-year period that corresponds to the company’s fiscal year
b. A continuous budget is a monthly budget
c. As a month/period expires in the budget, an additional month/period in the future is added so the company always has a 12-month budget on hand
d. None of these
178. Control can be defined as
a. the process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from plan
b. a quantification of plans, stated in either physical or financial terms, or both
c. identification of corporate objectives
d. a comprehensive financial plan
179. Which of the following is the most common starting point in the information gathering process for budgeting?
a. the personnel forecast
b. the sales forecast
c. the production forecast
d. the projected income statement
180. Which of the following is NOT an advantage of budgeting?
a. It forces managers to plan
b. It provides resource information that can be used to improve decision making
c. It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance
d. It provides organizational independence
172. The budgeting that recognizes interdependencies among departments is called___activity-based__budgeting.
173. Activity-based budgets also focus on ____business___ processes.
174. When managers intentionally underestimate or overestimate revenues and costs it is called budgetary ___slack___ .
175. The quantitative expression of a plan stated in either physical or financial terms or both is called a:
a. Cost of goods sold statement
b. Financial statement
c. Budget
d. Cost of goods manufactured statement
176. Which of the following is NOT a component of the master budget?
a. Sales Budget
b. Capital Budget
c. Cost of Goods Sold Budget
d. Budget to Actual Variance Analysis
177. Which of the following statement is correct regarding a continuous budget?
a. The budget is prepared for a one-year period that corresponds to the company’s fiscal year
b. A continuous budget is a monthly budget
c. As a month/period expires in the budget, an additional month/period in the future is added so the company always has a 12-month budget on hand
d. None of these
178. Control can be defined as
a. the process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from plan
b. a quantification of plans, stated in either physical or financial terms, or both
c. identification of corporate objectives
d. a comprehensive financial plan
179. Which of the following is the most common starting point in the information gathering process for budgeting?
a. the personnel forecast
b. the sales forecast
c. the production forecast
d. the projected income statement
180. Which of the following is NOT an advantage of budgeting?
a. It forces managers to plan
b. It provides resource information that can be used to improve decision making
c. It aids in the use of resources and employees by setting a benchmark that can be used for the subsequent evaluation of performance
d. It provides organizational independence
