Accounting Review Ch 8
When a manager creates a budget that is too easy to attain, _____ occurs.
budgetary slack
A 12 month budget that rolls forward one month or quarter as the current month or quarter is completed is call a(n) ______ or perpetual budget
continuous
Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of:
Self-imposed budget
In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the _______ budget
selling and administrative
All costs of production other than direct materials and direct labor are shown on the ____ budget.
manufacturing overhead
Limitations of self-imposed budgeting include:
-budgetary slack -suboptimal budget recommendations
When profit targets are set by top managers
-waste may occur -too much slack may be allowed -goals may be unrealistically high
A detailed plan for the future that is usually expressed in formal quantitative terms is:
a budget
Developing goals and preparing various budgets to achieve those goals is part of the _____ process
Planning
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.
Production
The master budget culminates in a ____ budget, a budgeted income statement and a budgeted balance sheet.
Cash
The receipts, disbursements, excess or deficiency, and financing section are all parts of the:
Cash budget
Gathering feedback to ensure that the plan is being followed is referred to as ________.
Control