5 Written questions
5 Matching questions
- Goal congruence
- Relative performance contracts
- Financial budgets
- Operating budgets
- Production budget
- a Identify sources and uses of funds for budgeted operations and capital expenditures
- b Shows planned production for given period.
- c Plans for all phases of operations and include production, purchasing, personnel, and marketing budgets.
- d Reward managers for performance based on comparison of actual results with specified benchmarks not budgeted targets.
- e Consistency between the goals of the firm, its subunits, and its employees.
5 Multiple choice questions
- Shows the amount and budgeted cost of direct material required for production
- Shows expected sales in units at their expected selling prices.
- Provides a constant planning horizon with the use of regularly updated forecasts.
- An incentive compensation plan whereby compensation is a function of actual performance compared to a fixed (budgeted) target.
- Planned spending on projects and initiatives that lead to long-term value and competetive advantage.
5 True/False questions
Budget → The process of projecting continuing operations and projects and then reflecting their financial impact.
Zero-base budgeting (ZBB) → A budgeting process based on activities and cost drivers of operations.
Activity-based budgeting (ABB) → A budgeting process that requires managers to prepare budgets from a zero base.
Budgetary slack → The "cushion" managers intentionally build into budgets to help ensure success in meeting the budget.
Budgeting → The process of projecting continuing operations and projects and then reflecting their financial impact.