181. The process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance.
a. Control
b. Monitoring
c. Eye balling
d. Comparing
182. Which of the following factors is NOT an advantage of preparing operating budgets?
a. It provides resource information that can be used to improve decision making
b. It improves communication and coordination
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 saves time and resources
183. The budget committee
a. has the responsibility to review the budget
b. resolves differences that may arise as the budget is prepared
c. prepares financial statements for the auditor
d. both a and b
184. The body that has the responsibility to review the budget, provide policy guidelines and budgetary goals, resolve differences that may arise as the budget is prepared, approve the final budget, and monitor the actual performance of the organization as the year unfolds is called the:
a. budget director
b. budget committee
c. controller
d. president
185. The budgets that are comprehensive financial plans made up of various individual departmental and activity budgets are the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
185. The budgets that are concerned with the income-generating activities of a firm are called the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
187. The budgets that are concerned with the inflows and outflows of cash and with financial position are called the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
188. Operating budgets are
a. a forecast of expected operating expenses
b. a forecast of operating expenses and related revenues
c. a forecast of units of production
d. concerned with the income-generating activities of a firm
189. The following is responsible for directing and coordinating the overall budgeting process:
a. budget committee
b. budget director
c. president
d. treasurer
190. Wheeling Company produces and sells bikes. It expects to sell 20,000 bikes in April 2016 and had 1,200 bikes in finished goods inventory at the end of March 2016. Wheeling Company would like to complete operations in April with at least 1,500 completed bikes in inventory. The bikes sell for $100 each.
What would be the total sales for April 2016?
a. $1,150,000
b. $1,850,000
c. $2,000,000
d. $1,730,000
20,000 × $100 = $2,000,000
a. Control
b. Monitoring
c. Eye balling
d. Comparing
182. Which of the following factors is NOT an advantage of preparing operating budgets?
a. It provides resource information that can be used to improve decision making
b. It improves communication and coordination
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 saves time and resources
183. The budget committee
a. has the responsibility to review the budget
b. resolves differences that may arise as the budget is prepared
c. prepares financial statements for the auditor
d. both a and b
184. The body that has the responsibility to review the budget, provide policy guidelines and budgetary goals, resolve differences that may arise as the budget is prepared, approve the final budget, and monitor the actual performance of the organization as the year unfolds is called the:
a. budget director
b. budget committee
c. controller
d. president
185. The budgets that are comprehensive financial plans made up of various individual departmental and activity budgets are the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
185. The budgets that are concerned with the income-generating activities of a firm are called the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
187. The budgets that are concerned with the inflows and outflows of cash and with financial position are called the:
a. Operating budgets
b. Master budgets
c. Financial budgets
d. Continuous budgets
188. Operating budgets are
a. a forecast of expected operating expenses
b. a forecast of operating expenses and related revenues
c. a forecast of units of production
d. concerned with the income-generating activities of a firm
189. The following is responsible for directing and coordinating the overall budgeting process:
a. budget committee
b. budget director
c. president
d. treasurer
190. Wheeling Company produces and sells bikes. It expects to sell 20,000 bikes in April 2016 and had 1,200 bikes in finished goods inventory at the end of March 2016. Wheeling Company would like to complete operations in April with at least 1,500 completed bikes in inventory. The bikes sell for $100 each.
What would be the total sales for April 2016?
a. $1,150,000
b. $1,850,000
c. $2,000,000
d. $1,730,000
20,000 × $100 = $2,000,000
