Budgeting and Management Processes Quiz

Play an AI-generated podcast conversation about this lesson

What is a disadvantage of a static budget?

It does not adjust for changes in activity levels (correct)

It adjusts for changes in activity levels

It integrates operating and financial budgets

It shows expected results for several activity levels

Which budget estimates the quantities of direct materials to be purchased to support budgeted production and desired inventory levels?

Factory overhead cost budget

Direct materials purchases budget (correct)

Sales budget

Direct labour cost budget

What does the production budget estimate?

Quantities of direct materials to be purchased

Direct labor hours needed to support budgeted production

Number of units to be manufactured to meet budgeted sales and desired inventory levels (correct)

Cost for each item of factory overhead

Which budget integrates the following budgets: Direct material purchases, Direct labour cost, and Factory overhead cost?

Cost of goods sold budget Signup and view all the answers

What is the purpose of a cash budget?

Estimating expected receipts and payments of cash Signup and view all the answers

In multiperiod budgeting, what does the Budget Production formula represent?

The number of units to be manufactured Signup and view all the answers

What is the main difference between zero-based budgeting and incremental budgeting?

Zero-based budgeting requires starting from scratch each year, while incremental budgeting builds on the previous year's budget. Signup and view all the answers

What is the purpose of participating budgeting in organizations?

To involve employees in developing performance metrics and budgeted goals with supervisors. Signup and view all the answers

In what situation does goal conflict arise in the budgeting process?

When individual objectives contradict organizational objectives. Signup and view all the answers

What is the role of a responsibility center in an organization?

To allocate responsibility over costs, revenue, or assets to a manager. Signup and view all the answers

Why might setting too loose budget goals be detrimental to a company?

Because it leads to unnecessary expenditure of resources. Signup and view all the answers

Budgeting and Management Processes Quiz

Podcast Beta

Questions and Answers

What is a disadvantage of a static budget?

Which budget estimates the quantities of direct materials to be purchased to support budgeted production and desired inventory levels?

What does the production budget estimate?

Which budget integrates the following budgets: Direct material purchases, Direct labour cost, and Factory overhead cost?

What is the purpose of a cash budget?

In multiperiod budgeting, what does the Budget Production formula represent?

What is the main difference between zero-based budgeting and incremental budgeting?

What is the purpose of participating budgeting in organizations?

In what situation does goal conflict arise in the budgeting process?

What is the role of a responsibility center in an organization?

Why might setting too loose budget goals be detrimental to a company?

More Quizzes Like This

les budget

Processo de Projetos e Orçamentos

Budgeting Process

BUS-091 Module 3: Budgeting Process

Upgrade to continue