Chapter 6 test bank with answers Horngren\'s Cost Accounting: A Managerial Emphasis, 16th Global Edition PDF

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test bank with answers Horngren's Cost Accounting: A Managerial Emphasis, 16th Global Edition...

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Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Cha pt e r6 Ma s t e rBudge tandRe s pons i bi l i t yAc c ount i ng 6 . 1 Obj e c t i ve6 . 1 1 )Whi c hoft hef ol l owi ngi st r ueofabudge t ? A)Budge t sar eus e dt oe xpr e s sonl yt heope r a t i onalpl ansandnott hes t r a t e gi cpl a nsofac ompa ny . B)Budge t sdonotac c ountf ornonfina nc i alas pe c t soft heupc omi ngpe r i od. C)Budge t sa r emos tus e f ulwhe nt he yar epl a nne di nde pe nde ntoft hec ompany' ss t r a t e gi cpl ans . D)Budge t she l pmana ge r st or e vi s et he i rpl ansands t r a t e gi e s . Ans we r :D Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

2 )Whi c hoft hef ol l owi ngi safinanc i a lbudge t ? A)budge t e dbal anc es he e t B)c a s hr e c e i vabl e sbudge t C)pr oduc t i onbudge t D)c os tofgoodss ol dbudge t Ans we r :A Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

3 )Budge t si nc or por a t ema na ge me nt sgoa l sa nd A)ar eas t r a t e gi cl ongr a ngepl an B)a r ebot has hor tr angea ndl ongr a ngepr ofitpl an C)i nc l ude sonl yfina nc i alas pe c t sofa nope r a t i onast hos ear et heonl yi t e mst ha tc anbequant i fie di na pr ofitpl an D)e xpr e s smana ge me nt ' sope r a t i ngandfinanc i alpl a nf oras pe c i fie dpe r i od-us ua l l yafis c a lye a r Ans we r :D Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

4 )Whi c hoft hef ol l owi ngi st r ueofma s t e rbudge t s ? A)The yi nc l udeonl yfinanc i a la s pe c t sofapl a nande x c l udenonfinanc i alas pe c t s . B)I nc l ude sbot hfinanc i alandnonfinanc i ala s pe c t sofma na ge me nt ' spl ans . C)The yai di nqua nt i f yi ngt hee xpe c t a t i onsofal ls t ake hol de r s . D)The ymus tbeadmi ni s t e r e dr i gi dl yaf t e rt he yar ec ommi t t e dt o. Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

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5 )Ope r a t i ngde c i s i onspr i mar i l yde a lwi t h_____ ___. A)t hebe s tus eofs c ar c er e s our c e s B)how t oobt ai nf undst oac qui r er e s our c e s C)ac qui r i nge qui pme nta ndbui l di ngs D)s a t i s f yi ngs t oc khol de r s Ans we r :A Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

6 )Fi na nc i ngde c i s i onspr i mar i l yde alwi t h__ ______ . A)t heus eofs c a r c er e s our c e s B)how t oobt ai nf undst oac qui r er e s our c e s C)ac qui r i nge qui pme nta ndbui l di ngs D)pr e par i ngfinanc i als t a t e me nt sf ors t oc khol de r s Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

7 )Ama s t e rbudge t_____ ___. A)i st hei ni t i alpl anofwha tt hec ompa nyi nt e ndst oac c ompl i s hi nt hepe r i odande vol ve sf r om bot ht heope r a t i ngandfinanc i ngde c i s i ons B)i sonl ypr e par e df ormanuf a c t ur e r sast he yar et heonl yt ypeofc ompanywi t hma t e r i a lpur c has e sand wor k i npr oc e s sac c ount s . C)i mpr ove sc ompa ni e s ' mar ke tc api t a l i z a t i ona nde vol ve sf r om bot ht hei nve s t i ngandfinanc i ngde c i s i ons D)i sanot he rnamegi ve nt ot hefinanc i albudge t Ans we r :A Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

8 )Whi c hoft hef ol l owi ngi snott r ueofapr ope r l ye xe c ut e dbudge t ar yc yc l e ? A)de vi a t i onsf r om pl anar eonl yi nve s t i ga t e da tt hec onc l us i onoft hefis c a lye arasac t ualda t ac anbe final l yc ompi l e d B)pas tpe r f or ma nc eandma r ke tf e e dbac kar ec ons i de r e di ns e t t i ngbudge tamount s C)s pe c i ficfinanc i a la ndnonfina nc i ale xpe c t a t i onsar es e t D)dur i ngt hefis c a lye a r , mana ge r si nve s t i ga t ede vi a t i onsf r om pl ans Ans we r :A Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

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9 )Whi c hoft hef ol l owi ngs t a t e me nt si st r ueofbudge t s ? A)Mas t e rbudge t se xpr e s sma na ge me nt ' sope r a t i ngandfina nc i alpl a ns . B)Fi na nc i albudge t sar epr e par e dbe f or et hema s t e rbudge ti spr e par e d. C)Ope r a t i ngbudge t sar epr e par e di nde pe nde nt l yoft hema s t e rbudge t . D)Thebudge t e dbal anc es he e ti st hefir s tbudge tpr e par e dasma na ge me nti sve r ymuc hc onc e r ne dwi t h pr oj e c t e dfinanc i a lpos i t i on Ans we r :A Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 0)Thepr e par a t i onofal lt hebudge t si nt hema s t e rbudge tf or c e sma na ge r st ot hi nka boutt he i rbus i ne s s ope r a t i onsandt of or mul a t epl ans , whi l e : A)de t e c t i ngi na c c ur a t ehi s t or i c alr e c or dst oa voi de r r or si nbudge t s B)s e t t i nge xpe c t a t i onsa gai ns twhi c hac t ualr e s ul t sc anbec ompa r e d C)c ompl e t i ngt hebudge t i ngt as kswi t hmi ni malc r os sf unc t i onalf e e dbac k D)i gnor i ngfinanc i alr i s ksandoppor t uni t i e s Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 1)A budge ti st hequant i t a t i vee xpr e s s i onofapr opos e dpl a nofac t i onbymana ge me ntf oras pe c i fie d pe r i od. Ans we r :TRUE Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 2)A budge tge ne r a l l yi nc l ude sonl yt hefina nc i alas pe c t sofma na ge me nt ' spl an. Ans we r :F ALSE Expl a na t i on:Thebudge ti nc l ude sfinanc i a la ndnonfinanc i alas pe c t soft hepl a ni nc l udi ngs uc h nonfina nc i alas pe c t sasuni t st ha tne e dt obeor de r e d,ma npowe rr e qui r e me nt s ,quant i t i e sofma t e r i a l s t ha tne e dt obeor de r e dandus e d, hour swor ke de t c . Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 3)Thebe ne fitofe nga gi ngl owe rl e ve lma na ge me nti nt hebudge tpr e par a t i onpr oc e s si st ha ti the l pst o s t r e a ml i net hebudge tpr oc e s s . Ans we r :F ALSE Expl a na t i on:I nvol ve me ntofl owe rl e ve lma na ge me nti sa c t ual l ymor et i mec ons umi nghowe ve r ,t he r ea r e ma nybe ne fit sofbot t omup/par t i c i pa t i vebudge t i ngandt hos ebe ne fit sout we i ght headdi t i onalc os tof e nga gi ngmor epe opl ei nt hepr oc e s s . Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

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1 4)Budge t i ngi nc l ude sonl yt hefinanc i ala s pe c t soft hepl anandNOTanynonfinanc i a la s pe c t ss uc has t henumbe rofphys i c a luni t sma nuf ac t ur e dort hehour st ha tt hedi r e c tl a bor e r sar ee xpe c t e dt owor k. Ans we r :F ALSE Expl a na t i on:Budge t i ngi nc l ude sbot hfina nc i alandnonfina nc i ala s pe c t soft hepl an. Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 5)Ope r a t i ngpl a nsar ege ne r a l l ye xpr e s s e dt hr oughl ongr unbudge t s . Ans we r :F ALSE Expl a na t i on:Ope r a t i ngpl a nsar ege ne r al l ye xpr e s s e dt hr oughs hor t r unbudge t s . St r a t e gi cpl a nsar e e x pr e s s e dt hr oughl ongr unbudge t s . Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 6)A budge ti sac ommuni c a t i onai d, i nf or mi ngs t a ffofe xpe c t a t i onsandpr ovi di ngi nf or ma t i ont ha ti s e s s e nt i alt oc oor di na t i ngwha tne e dst obedonet oi mpl e me ntt hepr opos e dpl an. Ans we r :TRUE Di ff: 1 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 7)Budge t sa r es ome t i me sc al l e dt ar ge t sorc ommi t me nt sbys omec ompa ni e sa nda ss uc har e" s e ti n s t one "t opr ovi dee ffe c t i vebe nc hma r ksf ormana ge me nt . Ans we r :F ALSE Expl a na t i on:Budge t sa r egui de sf orc ompa ni e st of ol l o w buts houl dnotbe" s e ti ns t one " .Tha tt ypeof r i gi di t ydoe snotal l ow f ort heope r a t i onalfle xi bi l i t yne e dt oadj us tf orne wi nf or ma t i onoroppor t uni t i e s t ha tma yar i s edur i ngt hebudge tpe r i od. Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 8)Fi nanc i ngde c i s i onsde a lwi t hhow t obe s tus et hel i mi t e dr e s our c e sofanor gani za t i on. Ans we r :F ALSE Expl a na t i on:Fi nanc i ngde c i s i onsde alwi t hhow t oobt a i nf undst oac qui r er e s our c e sne e de df ort he or gani z a t i on. Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

1 9)A budge t i ngpr oc e s sc anf a c i l i t a t el e ar ni ngi nt ha tf e e dbac kf r om budge t sc anl e adt oc hange si npl ans a nds t r a t e gi e s . Ans we r :TRUE Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

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2 0)Budge t e dfina nc i als t a t e me nt sa r ec al l e dpr of or mas t a t e me nt s . Ans we r :TRUE Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

2 1)De s c r i bet hebe ne fit sofpr e par i nga nope r a t i ngbudge tt oanor ga ni z a t i on. Ans we r :Awe l l pr e pa r e dope r a t i ngbudge ts houl ds e r vea sagui def orac ompanyt of ol l ow dur i ngt he budge t e dpe r i od.I ti snot" s e ti ns t one . "I fne wi nf or ma t i onoroppor t uni t i e sar i s e ,t hebudge ts houl dbe a dj us t e d. Awe l l pr e pa r e dope r a t i ngbudge tas s i s t sma na ge me ntwi t ht heal l oc a t i onofs c a r c er e s our c e s . I tc anhe l p ma na ge me nts e et r oubl es pot si nadvanc e ,a ndt he nmana ge me ntc ande c i dewhe r et oal l oc a t ei t sl i mi t e d r e s our c e s . Awe l l pr e pa r e dope r a t i ngbudge tf os t e r sc ommuni c a t i ona ndc oor di na t i ona mongvar i ouss e gme nt sof t hec ompany .Thepr oc e s sofpr e par i ngabudge tr e qui r e smana ge r sf r om di ffe r e ntf unc t i onalar e a st o wor kt oge t he ra ndc ommuni c a t epe r f or ma nc el e ve l st he ybot hwantandc ana t t a i n. Awe l l pr e pa r e dope r a t i ngbudge tc anbe c omet hepe r f or manc es t andar da gai ns twhi c hfir msc an c ompar et heac t ua lr e s ul t s . Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

2 2)BobandDal eha vej us tpur c ha s e das ma l lhone ymanuf a c t ur i ngc ompanyt ha twasha vi ngfinanc i al di ffic ul t i e s . Af t e rabr i e fope r a t i ngpe r i od, t he yde c i de dt ha tt hec ompa ny' sma i npr obl e m wasa n i mpr ope rbudge t i ngf unc t i on.Thec ompanymadeagoodpr oduc tandma r ke tpot e nt i a lwasgr e a t . Re qui r ed: De s c r i bet heus ua lbudge t i ngc yc l et ha twe l l mana ge dc ompa ni e sadopt ? Ans we r :Theus ua lbudge t i ngc yc l et ha twe l l mana ge dc ompa ni e sadoptc ons i s t soft hef ol l owi ngt hr e e s t e ps : 1 . Be f or et hes t ar toft hepe r i od, mana ge r sa ndma na ge me ntac c ount ant swor kt oge t he rt ode ve l oppl ans f ort hec ompanyasawhol eandt hepe r f or ma nc eofi t ss ubuni t s ,t a ki ngi nt oac c ountt hec ompany' spa s t pe r f or manc e , mar ke tf e e dbac k,a nda nt i c i pa t e df ut ur ec hange s . 2 . Att hebe gi nni ngoft hepe r i od, mana ge r sa r epr ovi de dwi t haf r a me wor kt ha tout l i ne ss pe c i fic financ i a lornonfina nc i ale xpe c t a t i onsa gai ns twhi c hac t ualr e s ul t swi l lbec ompar e d. 3 . Dur i ngt hec our s eoft heye ar , mana ge me nta c c ount ant sandma na ge r si nve s t i ga t eanyde vi a t i onsf r om pl ansandt akec or r e c t i vea c t i on,i fne c e s s a r y . Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c a lt hi nki ng

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6 . 2 Obj e c t i ve6 . 2 1 )Whi c hoft hef ol l owi ngi st r ueofbudge t swhe nt he yar ea dmi ni s t e r e dt hought f ul l y? A)The ye l i mi na t es ubj e c t i vi t yi npe r f or manc ee va l ua t i on. B)The yc ane l i mi na t et heunc e r t ai nt yf ac e dbyac ompany . C)The ypr omot ec oor di na t i onwi t hi nt hes ubuni t sofac ompa ny . D)The yar eas ubs t i t ut et hepl anni nga ndc oor di na t i onf unc t i onsofma na ge me nt . Ans we r :C Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

2 )Abudge ti sane ndpr oduc tofne got i a t i onsamongs e ni orands ubor di na t ema nge r sbe c a us e__ ______ . A)budge t i ngi st he i rmut ua lr e s pons i bi l i t y B)s e ni orma na ge r sal onec annots par et het i mer e qui r e df ort hebudge t i ngpr oc e s s C)s e ni orma na ge r sar er e s pons i bl ef orpr ovi di ngi nf or ma t i ononc ompe t i t or spe r f or ma nc eand s ubor di na t ema na ge r sar er e s pons i bl ef ori nf or ma t i onone x t e r nalmar ke tc ondi t i ons D)s e ni orma na ge r swantve r yc hal l e ngi ngt ar ge t s , whi l es ubor di na t e sma ywantt ar ge t st ha ta r er e l a t i ve l y e a s i e rt oac hi e ve . Ans we r :D Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

3 )Whi c hoft hef ol l owi ngi sal i mi t a t i onofus i ngpa s tpe r f or ma nc easaba s i sf orj udgi nga c t ualr e s ul t s ? A)I tdoe snota c c ountf orpr oduc t i vi t yi nc r e as e sove rt hepe r i ods . B)I ti nc r e a s e st hei nc e nt i vef ormana ge r st oi nt r oduc ebudge t a r ys l ac k. C)I tas s ume si ne ffic i e nc i e sofpr e vi ouspe r i odswi t houtc ons i de r i ngpos s i bl ee ffic i e nc i e soft hebudge t pe r i od. D)I ti nc r e as e st het e nde nc yofs e ni ormana ge r se xa gge r a t i ngc hange si nf ut ur ec ondi t i onsasoppos e dt o c ha nge si nc ur r e ntc ondi t i ons . Ans we r :C Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

4 )Thepr ac t i c eofde ve l opi ngr e a s ona bl yc ha l l e ngi ngbudge t st e ndt ohe l p: A)di s c our a geout of t he boxandc r e a t i vet hi nki nga st he r ei sve r yl i t t l er oom f ore r r or B)s e tunr e a l i s t i ce xpe c t a t i onsandar epe r c e i ve dasove r l yambi t i ousa nduna c hi e vabl e C)i nc r e a s eanxi e t ywi t houtmot i va t i onnotme e t i ngt he mi svi e we dasaf a i l ur e D)mot i va t ei mpr ove dpe r f or manc ease mpl o ye e swor kmor ei nt e ns e l yt oa voi df a i l ur e Ans we r :D Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

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5 )Al i mi t a t i onofus i ngpa s tpe r f or manc easabas i sf orj udgi ngac t ua lr e s ul t si st ha t___ _____. A)f ut ur ec ondi t i onsc a nbedi ffe r e ntf r om t hepas t B)a nyunde r val ua t i onofpr ofit si nt hepa s tpe r i odi sl i ke l yt oc ont i nue C)anys ubs e que ntc hangei nac c ount i ngt r e a t me ntwi l ldi s t or tpe r f or ma nc ee va l ua t i on D)t he yt e ndt odi s t or tr e s ul t swhe nc ur r e nta ndpas tc ondi t i onsar es i mi l ar Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

6 )Ac ompany' sa c t ualpe r f or manc es houl dbec ompar e da ga i ns tbudge t e damount sf ort hes a me a c c ount i ngpe r i ods ot ha t______ __. A)adj us t me nt sf orf ut ur ec ondi t i onsc a nbei nc l ude d B)t oa voi da nyf e e dba c kf r om t hebudge t sduet opas tmi s c ue s C)i ne ffic i e nc i e soft hepa s tye a rc a nbei nc l ude d D)ar ol l i ngbudge tc a nbei mpl e me nt e d Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

7 )Whi c hoft hef ol l owi ngi sar e a s onwhyt opma na ge r swantl owe r l e ve lma na ge r st opa r t i c i pa t ei nt he budge t i ngpr oc e s s ? A)Tobe ne fitf r om t he i re xpe r i e nc ewi t ht heda yt oda yas pe c t sofr unni ngt hebus i ne s s . B)Tor e duc et het i meandc os te xpe nde di nt hebudge t i ngpr oc e s s . C)Toe ns ur et ha tt he ydonoti nt r oduc eanybudge t ar ys l ac k. D)Toe ns ur et ha tt hebudge t sa r eadmi ni s t e r e dr i gi dl ygi ve nt hec hangi ngmar ke tc ondi t i ons . Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

8 )Thema j orobj e c t i ve sofabudge t i ngpr oc e s ss houl di nc l udeal l oft hef ol l owi ngEXCEPT: A)pr ovi di ngc oor di na t i onamongt hes ubuni t s B)pr ovi di ngc ommuni c a t i onamongt hes ubuni t s C)pr ovi di ngunyi e l di ngc ommi t me ntt ot a r ge t sasame a nst oa c hi e veat ar ge tpr ofit D)pr ovi di ngaf r a me wor kf orj udgi ngpe r f or ma nc eandf a c i l i t a t i ngl e a r ni ng Ans we r :C Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

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9 )Whi c hoft hef ol l owi ngi sr e f e r r e dt oast hebot t omupas pe c toft hebudge t i ngpr oc e s s ? A)l o we r l e ve lma na ge r ss e t t i ngt he i ri ndi vi dualt ar ge t st ha ta ggr e ga t et obet hec ompanywi det ar ge t B)s e ni orma na ge r sc ons ul t i ngmi ddl e -andl owe r l e ve lmana ge r st oi nve s t i ga t ea nyde vi a t i onsf r om t he budge t C)l owe r l e ve lmana ge r si mpl e me nt i ngt hebudge t swi t hs e ni orma na ge r smoni t or i ngpr ogr e s sand i nve s t i ga t i ngde vi a t i ons D)l owe r l e ve lma na ge r spr ovi di ngi nput st ot hebudge t i ngpr oc e s sbas e dont he i rs pe c i a l i z e dknowl e dge a ndf a mi l i a r i t yoft heope r a t i on Ans we r :D Di ff: 3 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 0)Par t i c i pa t i onofe mpl oye e si nt hebudge t i ngpr oc e s she l ps____ ____. A)c r e a t egr e a t e rc ommi t me ntt o war dst hebudge t B)c r e a t ede mandi ngbutac hi e vabl ebudge t C)de c r e as ede vi a t i onsf r om t hebudge t D)s e c ur ec ommuni c a t i onofs e ns i t i vei nf or ma t i on Ans we r :A Di ff: 1 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 1)Mana ge r swhof e e lt ha tt opma na ge me ntdoe snotbe l i e vei nt hebudge tar emos tl i ke l yt o______ __. A)pi c kupt hes l ac ka ndpar t i c i pa t ei nt hebudge t i ngpr oc e s s B)t of a c el i t t l ei nt e r f e r e nc ei nt heda yt oda ya s pe c t sofr unni ngt hebus i ne s s C)bel e s se nga ge dpar t i c i pa nt si nt hebudge t i ngpr oc e s sa ndl e s sc ommi t t e dt oac hi e vi ngbudge t e d t a r ge t s D)c onve r tt hebudge tt oas hor t e rmor er e as onabl et i mepe r i odt ha twi l lhe l pwi t hr e a lt i mer e por t i ng Ans we r :C Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 2)Oneoft hebe ne fit sofawe l li mpl e me nt e da nde x e c ut e dbudge ti sc ommuni c a t i on.Whi c hoft he f ol l owi ngbe s tde s c r i be sc ommuni c a t i onwi t hi nt hebudge t ar yc yc l e ? A)me s hi ngandbal anc i ngofal las pe c t sofpr oduc t i onors e r vi c e B)ma ki nge a c hmana ge ra war eoft hepl anandal l owi nge a c hma na ge rt ounde r s t a ndt hei mpor t anc eof t hepl an C)al l oc a t i onofs c a r c er e s our c e sac r os sa l l f unc t i onala r e a soft hec ompany D)t hec al c ul a t i onofde vi a t i onsf r om pl a n Ans we r :B Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

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1 3)Budge t ss houl d___ _____. A)notbes or i gi dt ha ti fc ondi t i onsc hange , adj us t me nt si ns pe ndi ngc anbemade B)beadmi ni s t e r e dr i gi dl y C)onl ybede ve l ope df ors hor tpe r i odsoft i mes uc hasqua r t e r s D)i nc l udeonl yvar i a bl ec os t s Ans we r :A Di ff: 1 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 4)Af t e rabudge ti sa gr e e duponandfina l i z e dbyt hema na ge me ntt e a m, t heamount ss houl dNOTbe c ha nge df oranyr e as on. Ans we r :F ALSE Expl a na t i on:Budge t ss houl dnotbea dmi ni s t e r e dr i gi dl y , butr a t he rs houl dbeadj us t e df orc hangi ng c ondi t i ons . Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 5)Eve ni nt hef a c eofc ha ngi ngc ondi t i ons ,a t t a i ni ngt heor i gi nalbudge ti sc r i t i c alandi st heonl yt r ue me as ur eofs uc c e s s . Ans we r :F ALSE Expl a na t i on:Changi ngc ondi t i onsus ual l yc al lf orac hangei npl a ns . At t a i ni ngt hebudge ts houl dnotbe a ne ndi ni t s e l fandi snott hefinalde t e r mi na ntofs uc c e s s . Di ff: 2 Obj e c t i ve :2 AACSB:Ana l yt i c a lt hi nki ng

1 6)Re s e ar c hs howst ha tt hepe r f or ma nc eofe mpl oye e sf a l l swhe nt he ya r eas ke dt oadhe r et oc ha l l e ngi ng budge t s . Ans we r :F ALSE Expl a na t i on:Re s e ar c hs howsj us tt heoppos i t e .Thepe r f or manc eofe mpl oye e si mpr ove swhe nt he y r e c e i veac hal l e ngi ngbudge t . Mos te mpl oye e sa r emot i va t e dt owor kmor ei nt e ns e l yt oa voi d...