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5 Written questions

5 Matching questions

  1. Budgeting
  2. Fixed performance contract
  3. Goal congruence
  4. Relative performance contracts
  5. Budgetary slack
  1. a An incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.
  2. b The process of projecting continuing operations and projects and then reflecting their financial impact.
  3. c Consistency between the goals of the firm, its subunits, and its employees.
  4. d The "cushion" managers intentionally build into budgets to help ensure success in meeting the budget.
  5. e Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.

5 Multiple choice questions

  1. Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
  2. Represents budgets prepared in conjunction with a TDABC system.
  3. A detailed plan for the acquisition and use of financial and other resources over specified period of time - typically a fiscal year.
  4. Shows the physical amount and cost of planned purchases of direct materials.
  5. Identifies required actions over a 5 to 10 year period to attain the firm's strategic goal(s).

5 True/False questions

  1. Financial budgetsIdentify sources and uses of funds for budgeted operations and capital expenditures

          

  2. Direct materials usage budgetShows the physical amount and cost of planned purchases of direct materials.

          

  3. Gaming the performance measureAn incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.

          

  4. Practical capacityThe measure of capacity used to estimate cost-driver rates under ABC and TDABC systems.

          

  5. Rolling financial forecastProvides a constant planning horizon with the use of regularly updated forecasts.

          

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