ACC 350 Week 7 Quiz – Strayer
Click on the Link Below to Purchase A+ Graded Course Material
http://budapp.net/ACC-350-Week-7-Quiz-Strayer-344.htm
Quiz 5 Chapter 6
Master Budget and Responsibility Accounting
1)
Few businesses plan to fail, but many of those that don't succeed have failed to plan.
2)
The master budget reflects the impact of operating decisions, but not financing decisions.
3)
Budgeted financial statements are also referred to as pro forma statements.
4)
Budgeting includes only the financial aspects of the plan and not any nonfinancial aspects such as the number of physical units manufactured.
5)
Budgeting helps management anticipate and adjust for trouble spots in advance.
Answer:
6)
Budgets can play both planning and control roles for management.
7)
Long-run planning and short-run planning are best performed independently of each other.
8)
Operating decisions deal with how to best use the limited resources of an organization.
9)
Investing decisions deal with how to obtain the funds to acquire resources.
10)
Budgeted financial statements are called pro forma statements.
11)
After a budget is agreed upon and finalized by the management team, the amounts should not be changed for any reason.
12)
Even in the face of changing conditions, attaining the original budget is critical.
13)
Lower-level managers will not actively participate in the budget process if they perceive upper management does not believe in the process.
14)
A four-quarter rolling budget encourages management to be thinking about the next 12 months.
15)
A rolling budget is the same as a continuous budget.
16)
Research has shown that challenging budgets (rather than budgets that can be easily attained) are energizing and improve performance.
17)
The revenue budget and the budgeted income statement are used to prepare the budgeted balance sheet and the budgeted statement of cash flows.
18)
It is best to compare this year's performance with last year's actual performance rather than this year's budget.
19)
When administered wisely, budgets promote communication and coordination among the various subunits of the organization.
20)
Preparation of the budgeted income statement is the final step in preparing the operating budget.
21)
The sales forecast should primarily be based on statistical analysis with secondary input from sales managers and sales representatives.
22)
The usual starting point in budgeting is to forecast net income.
23)
The revenues budget should be based on the production budget.
24)
The operating budget is that part of the master budget that includes the capital expenditures budget, cash budget, budgeted balance sheet, and the budgeted statement of cash flows.
25)
Since fixed manufacturing overhead is fixed, it is not normally included in the operating budget.
26)
The manufacturing labor budget depends on wage rates, production methods, and hiring plans.
27)
The manufacturing labor budget depends on wage rates, production methods, and hiring plans.
28)
If inventoriable costs in the operating budget are going to be in accordance with Generally Accepted Accounting Principles (GAAP), they include only variable manufacturing costs.
29)
Activity-based budgeting provides better decision-making information than budgeting based solely on output-based cost drivers (units produced, units sold, or revenues).
30)
Activity-based costing analysis takes a long-run perspective and treats all activity costs as variable costs.
31)
Activity-based budgeting (ABB) focuses on the budgeting cost of activities necessary to produce and sell products and services.
32)
Activity-based budgeting would permit the use of multiple drivers and multiple cost pools in the budgeting process.
33)
Activity-based budgeting and kaizen budgeting are really equivalent in meaning.
34)
If budgeted amounts change, the kaizen approach can be used to examine changes in the budgeted results.
35)
Computer-based financial planning models are mathematical statements of the interrelationships among operating activities, financial activities, and other factors that affect the budget.
36)
Most computer-based financial planning models have difficulty incorporating sensitivity (what-if) analysis.
37)
Sensitivity analysis is a "what-if" technique that examines how a result will change if the original prediction or assumptions change.
38)
If we increase the selling price of our product, we should probably expect a decline in the number of these products sold.
39)
If we increase the selling price of our product, we can always expect an increase in total revenue.
40)
Sensitivity analysis incorporates continuous improvement into budgeted amounts.
41)
Companies implementing kaizen budgeting believe that employees who actually do the job have the best knowledge of how the job can be done better.
42)
The Japanese use kaizen to mean financing alternatives.
43)
Kaizen budgeting does not make sense for profit centers.
44)
Kaizen budgeting encourages small incremental changes, rather than major improvements.
45)
Kaizen budgeting allows for budgeting of small incremental increases in costs each budgeting period to allow for the effects of normal inflation.
46)
A responsibility center is a part, segment, or subunit of an organization, whose manager is accountable for a specified set of activities.
47)
Each manager, regardless of level, is in charge of a responsibility center.
48)
In a profit center, a manager is responsible for investments, revenues, and costs.
49)
A packaging department is MOST likely a profit center.
50)
Variances between actual and budgeted amounts inform management about performance relative to the budget.
51)
An organization structure is an arrangement of lines of responsibility within the entity.
52)
A responsibility center can be structured to promote better alignment of individual and company goals.
53)
Management will most likely behave the same way if a department is structured as a revenue center or if the same department is structured as a profit center.
54)
Responsibility accounting focuses on control, not on information and knowledge.
55)
The fundamental purpose of responsibility accounting is to fix blame when budgets are not achieved.
56)
Human factors are crucial parts of budgeting.
57)
Budgetary slack provides management with a hedge against unexpected adverse circumstances.
58)
Most costs can be easily controlled because they are under the sole influence of one manager.
59)
Performance reports of responsibility centers may include uncontrollable items to influence behavior that is in alignment with corporate strategy.
60)
When the operating budget is used as a control device, managers are more likely to be motivated to budget higher sales than actually anticipated.
61)
Budgeting slack is most likely to occur when a firm uses the budget only as a planning device and not for control.
62)
If a cost is considered controllable, it indicates that all aspects of the cost are under the control of the manager of the responsibility center to which that cost is assigned.
63)
To create greater commitment to the budget, top-management should create the budget and then share it with lower-level managers.
64)
Budgeting for a multinational company is made more complex due to the possibility of exchange rate fluctuations.
65)
The possibility of exchange rate fluctuations does not influence the budgeting procedures in a multinational corporation.
66)
Because of the possibility of exchange rate fluctuations, managers of multinational corporations should ignore subjective factors in their performance evaluations.
67)
A key use of sensitivity analysis is for cash-flow budgeting.
68)
The self-liquidating cycle is the movement from cash to inventories to receivables and back to cash.
69)
A budget:
A)
is the quantitative expression of a proposed plan of action by management
B)
is an aid to coordinate what needs to be done
C)
generally includes both financial and nonfinancial aspects of the plan
D)
serves as a blueprint for the company to follow in an upcoming period
E)
All of the above are correct.
70)
Examples of nonfinancial budgets include all of the following EXCEPT:
A)
units manufactured
B)
cash collections from customers
C)
units sold
D)
number of new products introduced
71)
Budgeting is used to help companies:
A)
plan to better satisfy customers
B)
anticipate potential problems
C)
focus on opportunities
D)
All of these answers are correct.
72)
A master budget:
A)
includes only financial aspects of a plan and excludes nonfinancial aspects
B)
is an aid to coordinating what needs to be done to implement a plan
C)
includes broad expectations and visionary results
D)
should not be altered after it has been agreed upon
73)
Operating decisions PRIMARILY deal with:
A)
the use of scarce resources
B)
how to obtain funds to acquire resources
C)
acquiring equipment and buildings
D)
satisfying stockholders
74)
Financing decisions PRIMARILY deal with:
A)
the use of scarce resources
B)
how to obtain funds to acquire resources
C)
acquiring equipment and buildings
D)
preparing financial statements for stockholders
75)
Budgeting provides all of the following EXCEPT:
A)
a means to communicate the organization's short-term goals to its members
B)
support for the management functions of planning and coordination
C)
a means to anticipate problems
D)
an ethical framework for decision making
76)
If initial budgets prov
No comments:
Post a Comment