5 Written questions
5 Matching questions
- Fixed performance contract
- Goal congruence
- Relative performance contracts
- Budgetary slack
- a An incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.
- b The process of projecting continuing operations and projects and then reflecting their financial impact.
- c Consistency between the goals of the firm, its subunits, and its employees.
- d The "cushion" managers intentionally build into budgets to help ensure success in meeting the budget.
- e Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
5 Multiple choice questions
- Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
- Represents budgets prepared in conjunction with a TDABC system.
- A detailed plan for the acquisition and use of financial and other resources over specified period of time - typically a fiscal year.
- Shows the physical amount and cost of planned purchases of direct materials.
- Identifies required actions over a 5 to 10 year period to attain the firm's strategic goal(s).
5 True/False questions
Financial budgets → Identify sources and uses of funds for budgeted operations and capital expenditures
Direct materials usage budget → Shows the physical amount and cost of planned purchases of direct materials.
Gaming the performance measure → An incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.
Practical capacity → The measure of capacity used to estimate cost-driver rates under ABC and TDABC systems.
Rolling financial forecast → Provides a constant planning horizon with the use of regularly updated forecasts.