BUDGETS - ACC 222

Budgets are normally used by businesses with a profit motive (I.e for-profit businesses)

FALSE

Which of the following statements best describes participative budgeting? a. Participative budgeting is a budgeting approach under which only top-level managers are involved in the budgeting process. b. Participative budgeting is a budgeting approach under which employees at all levels of the organization are actively involved in the budgeting process. c. Participative budgeting is a budgeting approach that relies solely on historical financial data to create budgets. d. Participative budgeting

b. Participative budgeting is a budgeting approach under which employees at all levels of the organization are actively involved in the budgeting process.

FILL IN THE BLANK: For budgeting to be considered participative, managers must have ___________ budgeting, and ____________ their approved budgets. a. control over, responsibility for b. control over, authority to decide c. responsibility for, authority to decide d. involvement with, influence on e. None of the above

d. involvement with, influence on

Budgeting involves which of the following activities? a. Setting goals b. Periodically comparing actual results with goals c. Executing plans to achieve goals d. Coordinating activities so the organization can allocate resources effectively e. All of the above

e. All of the above