Chapter 8 Managerial Accounting

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Budgets that are most likely to motivate employees ______.

are tight but attainable

A detailed document that identifies resources and expenditures that will be required over a limited time (typically a year) is a(n) ______.

budget

Company objectives are translated into financial terms in a(n)

budget

When a manager creates a budget that understates expected revenues or overstates expected expenses, _________ ________ occurs

budgetary slack

Total sales on the sales budget equal budgeted unit sales multiplied by ________.

budgeted sales price per unit

Budgets ______.

communicate management's plan throughout the organization

Another budget period is automatically added to the budget as one period passes when using a(n) ______ or rolling budget

continuous

True or false: Controlling involves developing goals and preparing various budgets to achieve those goals.

false

True or false: The same budget that is used for planning should always be used for performance evaluation.

false

True or false: Using a participative approach to budgeting is less likely to motivate employees than using a top-down approach.

false

The cash budget is one of the primary ______ budgets that is prepared.

financial

Managers must try to find the "just-right" level of difficulty in setting budgetary goals so they ______.

have motivating effects on employee behavior

A continuous or rolling budget ______.

helps avoid games at the end of a budget period keeps managers in continuous planning mode adds one period to the end of the budget as each period comes to a close

Managers put plans into action as part of ______.

implementing

Financial budgets ______.

include the cash budget include the capital expenditures budget impact the budgeted balance sheet

Long-term objectives are goals ______.

managers want to achieve in 5 to 10 years

Each component of a(n) _____ budget is based on or provides input for another component.

master

The direct materials purchases, direct labor, and manufacturing overhead budgets are all based on the ________ budget.

production

Advantages of budgeting include ______.

providing lead time to solve potential problems providing benchmarks for evaluating performance forcing managers to think about and plan for the future promoting cooperation and coordination among different areas within the organization

Managers are kept in continuous planning mode, always looking into the future, when a continuous or _______ budget approach is used.

rolling

The first step in the process of preparing the master budget is the ______ budget or forecast.

sales

The production budget is based upon the ______ budget.

sales

When creating the master budget, the _______ budget is prepared first

sales

Sometimes budgetary ________ can be beneficial as a way to hedge against uncertainty or future events than cannot be anticipated.

slack

Tactics are ______.

specific actions or mechanisms used to achieve an objective

Planning starts with managers' ______.

strategic plan

The starting point of the planning process is management's _________ ________or vision for the organization.

strategic plan

Specific actions or mechanisms managers use to achieve objectives are called ________

tactics

Budgetary slack occurs when a manager submits a budget that is ______.

too easy to attain

When an organization uses a top-down approach to budgeting, ______.

top management sets the budget the budget is imposed on lower levels of the organization

When management sets the budget and imposes it on employees throughout the organization, a __________-_________ approach is being followed

top-down

Managers must justify their budget each year by starting from scratch under the ______ - ______budgeting approach

zero - based

The entire budget must be created from scratch every period when using ______ budgeting.

zero-based

Short-term objectives ______.

need to be achieved in one year or less are an important component of long-term objectives

The pro-forma income statement is based on the combined ______ budgets.

operating

The sales, production, and purchases budgets are all _______ budgets.

operating or operational

Employees throughout the organization have input into the budget-setting process when ________ budgeting is used

participative, bottom-up, bottom up, or participatory

Setting goals and objectives for the future is done during the ______ phase

planning

Budgets are used for two distinct purposes: ______ and ______. The first of these purposes relates to developing goals and preparing various budgets, while the second involves comparing actual results to the budget.

planning controlling

Budgeting is an important part of the ______ and ______ cycle

planning control

Developing goals for the budget is part of _______, whereas ________- involves determining if goals have been followed

planning controlling

Which of the following statements is true? A. The master budget may be prepared in any order. B. Most components of a master budget stand on their own. C. Understanding the interrelationships of individual budgets is the key to developing a master budget. D. The first step in preparing the master budget is a budgeted balance sheet.

C. Understanding the interrelationships of individual budgets is the key to developing a master budget.

True or false: The sales budget is based on the production budget.

False

All of these rely on the the production budget except for the _______ budget.

Sales and Administrative

Which of the following budgets is NOT used to calculate the budgeted manufacturing cost per unit?

Sales and Administrative


Set pelajaran terkait

Chapter 6: Controls and Control Systems MGT 420 GCU

View Set

calc multiple choice quiz answers + explanations

View Set

CS-4447 Week 3 Quiz Study Questions (Ch. 5 & 6)

View Set

Macroeconomics Chapter 16, 20, 21

View Set

Nurses touch: Wellness and self care practice assessment

View Set

APUSH Ch. 28 Multiple Choice, AP US history Chapter 30, Chapter 31 Multiple Choice, chapter 32 APUSH, APUSH Chapter 33 Multiple Choice, Chapter 34 Multiple Choice APUSH

View Set