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