12 Questions
Which of the following is not a benefit of budgeting, according to the text?
It enables disciplinary action to be taken at every level of responsibility.
What is the most common length of a budget period, according to the text?
One year
What is the primary basis for setting budget goals, according to the text?
Past performance
Which of the following is not mentioned as a factor considered in sales forecasting, according to the text?
Employee compensation
What is the primary purpose of participative budgeting, according to the text?
To produce a budget considered fair and achievable by managers
Which of the following is an advantage of participative budgeting?
It provides more accurate budget estimates because lower-level managers have more detailed knowledge of their area.
What is the primary purpose of a budget according to the text?
To communicate objectives
Who is typically responsible for presenting management's budgeting goals in financial terms?
Accountants
What is a key benefit of budgeting mentioned in the text?
Creating an early warning system for potential problems
Why is budgeting considered a control device according to the text?
To serve as a basis for performance evaluation
In what way does budgeting contribute to efficiency as per the text?
By promoting goal-oriented activities
Which statement accurately describes the relationship between budgeting and accounting based on the text?
Accountants help in presenting management's budgeting goals in financial terms
Test your knowledge on budgeting essentials, master budget components, budgeted income statement, cash budget sections, and applicability of budgeting in various companies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
