Ch 22 ACC

A series of static budgets for different levels of activity is termed a(n)

flexible budget

When a manager seeks to achieve personal departmental objectives that may work to the detriment of the rest of the company, the organization is experiencing

goal conflict

The budgeting process does not involve which of the following activities?

increase in sales by increasing marketing efforts

The budgetary unit of an organization that is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

responsibility center

Jase Manufacturing Co.'s static budget for 10,000 units of production includes $40,000 for direct labor and $4,000 for variable electric power. Total fixed costs are $24,000. At 12,000 units of production, a flexible budget would show

variable costs of $52,800 and $24,000 of fixed costs

A formal written statement of management's plans for the future, expressed in financial terms, is a

budget

A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed

continuous budgeting

The benefits of comparing actual performance of the operations against planned goals include all of the following except

determining how managers are performing against prior years' actual operating results

The budget process involves doing all of the following except

dismissing all managers who fail to achieve operational goals specified in the budget

A disadvantage of static budgets is that they

do not allow for possible changes in underlying activity levels