Chapter 8
Developing goals and preparing various budgets to achieve those goals is part of Blank______, -responsibility accounting -planning -the budget period -control
planning
Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of Blank______. -responsibility accounting -continuous budgeting -self-imposed budgeting -a sales budget
self-imposed budgeting
An integrated business plan that formally lays out the company's goals is called the Blank______ budget. -profit planning -sales -self-imposed -master
master
A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the _____ budget.
master/static/planning
More accurate estimates and higher motivation are generally the result of using a ______ budget. -participative -imposed -perpetual -continuous
participative
Developing goals and preparing various budgets to achieve those goals is part of the _____.
planning
Budgets are used for two distinct purposes: Blank______ and Blank______. -benchmarking; integrating -advising; consulting -planning; control -executing; overseeing
planning controlling
In a manufacturing company, the ______ budget shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory. -direct materials -cash -production -sales
production
Master budget schedules ______. -may be prepared in any order -are based on estimates and assumptions -answer several key questions for a company
-are based on estimates and assumptions -answer several key questions for a company
Budgets ______. -coordinate the activities of the entire organization by integrating the plans of its various parts -encourage managers to think about and plan for the future -define goals and objectives that can serve as benchmarks for evaluating subsequent performance -and the budgeting process can uncover potential bottlenecks before they occur -provide each department with the same amount of money to spend, so that all departments are treated fairly
-coordinate the activities of the entire organization by integrating the plans of its various parts -encourage managers to think about and plan for the future -define goals and objectives that can serve as benchmarks for evaluating subsequent performance -and the budgeting process can uncover potential bottlenecks before they occur
Many of the schedules in a master budget are based on a variety of management estimates and assumptions. True False
True
Because it is needed for the schedule of expected cash collections, the annual master budget file includes the __________ _________ from last year.
balance sheet
A detailed plan for the future that is usually expressed in formal quantitative terms is ______. -profit planning -res-ponsibility accounting -the budget period -a budget
budget
A detailed plan for the future that is usually expressed in formal quantitative terms is a _____.
budget
Budgets _____. -communicate management's plan throughout the organization -focus on what has happened in the past -primarily help managers with day-to-day emergencies
communicate management's plan throughout the organization
Gathering feedback to ensure that the plan is being followed is referred to as
control/ controlling
When creating an Excel budget and performing what-if analysis, it is generally easiest to ______. -adjust data inputs within each master budget schedule -copy the master budget and make change to the copy only -create the budget with a budgeting assumption tab
create the budget with a budgeting assumption tab