5 Written Questions
5 Matching Questions
- Activity-based budgeting (ABB)
- Strategic budget expenditures
- Zero-base budgeting (ZBB)
- Practical capacity
- Operating budgets
- a Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
- b The measure of capacity used to estimate cost-driver rates under ABC and TDABC systems.
- c Plans for all phases of operations and include production, purchasing, personnel, and marketing budgets.
- d A budgeting process based on activities and cost drivers of operations.
- e A budgeting process that requires managers to prepare budgets from a zero base.
5 Multiple Choice Questions
- Shows expected sales in units at their expected selling prices.
- Identify sources and uses of funds for budgeted operations and capital expenditures
- Consistency between the goals of the firm, its subunits, and its employees.
- Shows the physical amount and cost of planned purchases of direct materials.
- A budgeting approach that incorporates continuous improvement expectations in the budget.
5 True/False Questions
Budgeting → The process of projecting continuing operations and projects and then reflecting their financial impact.
Direct materials usage budget → Shows the amount and budgeted cost of direct material required for production
Relative performance contracts → Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
Merchandise purchases budget → Shows the amount of merchandise it needs to purchase during the period.
Gaming the performance measure → A result on non-value-adding actions taken by managers to improve indicated performance.