5 Written questions
5 Matching questions
- Strategic budget expenditures
- Master budget
- Capital budgeting
- Gaming the performance measure
- a A detailed plan for the acquisition and use of financial and other resources over specified period of time - typically a fiscal year.
- b A result on non-value-adding actions taken by managers to improve indicated performance.
- c Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
- d An organization's operating and financing plan for the upcoming period; it translates short-term objectives into action steps
- e A process for evaluating, selecting, and financing long-term projects
5 Multiple choice questions
- Provides a constant planning horizon with the use of regularly updated forecasts.
- Shows expected sales in units at their expected selling prices.
- Depicts effects on cash of all budgeted activities.
- Shows planned production for given period.
- Shows the physical amount and cost of planned purchases of direct materials.
5 True/False questions
Merchandise purchases budget → Shows the amount of merchandise it needs to purchase during the period.
Fixed performance contract → Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
Budgeting → A detailed plan for the acquisition and use of financial and other resources over specified period of time - typically a fiscal year.
Direct materials usage budget → Shows the physical amount and cost of planned purchases of direct materials.
Activity-based budgeting (ABB) → A budgeting process that requires managers to prepare budgets from a zero base.