Ch 8.1 SB: Master Budgeting
a budget
A detailed plan for the future that is usually expressed in formal quantitative terms is:
Responsibility Accounting
managers should only be held accountable for items they can actually control
control
Gathering feedback to ensure that the plan is being followed
are based on estimates and assumptions answer several key questions about a company
Master budget schedules:
establish goals measure operating results isolate areas needing attention
The purpose of a budget should be to:
False
True or false: Control involves developing goals and preparing various budgets to achieve those goals.
False
True or false: The definition of responsibility accounting states that senior management is directly responsible for every decision made by lower level managers.
continuous/perpetual budget
A 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed
self imposed
A manager cannot complain that the budget was unrealistic and impossible to meet when a ______ ______ ____ is in place
master budget
A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the
master budget
An essential management tool that communicates management's plans throughout the organization, allocates resources, and coordinates activities is called the
mistrust
Using a budget to blame or pressure employees to do a better job leads to:
self-imposed budget
Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of:
continuous/perpetual budget
A budget that keeps managers focused at least one year ahead