Chapter 8

Developing goals and preparing various budgets to achieve those goals is part of Blank______, -responsibility accounting -planning -the budget period -control

planning

Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of Blank______. -responsibility accounting -continuous budgeting -self-imposed budgeting -a sales budget

self-imposed budgeting

An integrated business plan that formally lays out the company's goals is called the Blank______ budget. -profit planning -sales -self-imposed -master

master

A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the _____ budget.

master/static/planning

More accurate estimates and higher motivation are generally the result of using a ______ budget. -participative -imposed -perpetual -continuous

participative

Developing goals and preparing various budgets to achieve those goals is part of the _____.

planning

Budgets are used for two distinct purposes: Blank______ and Blank______. -benchmarking; integrating -advising; consulting -planning; control -executing; overseeing

planning controlling

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. -direct materials -cash -production -sales

production

Master budget schedules ______. -may be prepared in any order -are based on estimates and assumptions -answer several key questions for a company

-are based on estimates and assumptions -answer several key questions for a company

Budgets ______. -coordinate the activities of the entire organization by integrating the plans of its various parts -encourage managers to think about and plan for the future -define goals and objectives that can serve as benchmarks for evaluating subsequent performance -and the budgeting process can uncover potential bottlenecks before they occur -provide each department with the same amount of money to spend, so that all departments are treated fairly

-coordinate the activities of the entire organization by integrating the plans of its various parts -encourage managers to think about and plan for the future -define goals and objectives that can serve as benchmarks for evaluating subsequent performance -and the budgeting process can uncover potential bottlenecks before they occur

Many of the schedules in a master budget are based on a variety of management estimates and assumptions. True False

True

Because it is needed for the schedule of expected cash collections, the annual master budget file includes the __________ _________ from last year.

balance sheet

A detailed plan for the future that is usually expressed in formal quantitative terms is ______. -profit planning -res-ponsibility accounting -the budget period -a budget

budget

A detailed plan for the future that is usually expressed in formal quantitative terms is a _____.

budget

Budgets _____. -communicate management's plan throughout the organization -focus on what has happened in the past -primarily help managers with day-to-day emergencies

communicate management's plan throughout the organization

Gathering feedback to ensure that the plan is being followed is referred to as

control/ controlling

When creating an Excel budget and performing what-if analysis, it is generally easiest to ______. -adjust data inputs within each master budget schedule -copy the master budget and make change to the copy only -create the budget with a budgeting assumption tab

create the budget with a budgeting assumption tab