5 Written Questions
5 Matching Questions
- Gaming the performance measure
- Long-range plans
- Relative performance contracts
- Budgetary slack
- Cash budget
- a Identifies required actions over a 5 to 10 year period to attain the firm's strategic goal(s).
- b Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
- c A result on non-value-adding actions taken by managers to improve indicated performance.
- d The "cushion" managers intentionally build into budgets to help ensure success in meeting the budget.
- e Depicts effects on cash of all budgeted activities.
5 Multiple Choice Questions
- An organization's operating and financing plan for the upcoming period; it translates short-term objectives into action steps
- An incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.
- The process of projecting continuing operations and projects and then reflecting their financial impact.
- A process for evaluating, selecting, and financing long-term projects
- Shows planned production for given period.
5 True/False Questions
budgeting (TDABB) → Represents budgets prepared in conjunction with a TDABC system.
Strategic budget expenditures → Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
Zero-base budgeting (ZBB) → A budgeting process based on activities and cost drivers of operations.
Rolling financial forecast → Identify sources and uses of funds for budgeted operations and capital expenditures
Merchandise purchases budget → Shows the physical amount and cost of planned purchases of direct materials.