Budgeting Paper 10

1

A continuous (rolling) budget






2

Zero-based budgeting forces managers to






3

A company uses a type of budgeting that focuses on the cost of the processes required to produce and sell products and services. This type of budgeting is known as






4

Blackmore, Inc., has a goal to reduce wastefulness and develop a tight, efficient budget. The management team knows that this will take time, so they plan to allow more time and additional resources in the budget process. For the next budget year, a complete review of all activities and functions will be undertaken. The controller has elected to use this year’s master budget as the starting point for next year’s budget process. Considering management’s goals, did the controller make the most appropriate choice of budgeting methodologies?






5

Medico has found that its annual budgets are quickly outdated once actual data is recorded. Sometimes actual preparations have already begun for the period being budgeted by the time the annual budget is finished, which leaves no time to react to changing factors. Medico wants the budget to be as up-to-date as possible, and management is willing to revise budgets as needed. Which budgeting solution would be most appropriate for Medico?






6

The type of budget that is available on a continuous basis for a specified future period -- by adding a month, quarter, or year in the future as the month, quarter, or year just ended is dropped -- is called a(n)






7

The use of the master budget throughout the year as a constant comparison with actual results signifies that the master budget is also a






8

Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertainty in unit sales volumes for next year?






9

A budgeting approach that requires a manager to justify the entire budget for each budget period is known as






10

There are many different budget techniques or processes that business organizations can employ. One of these techniques or processes is zero-based budgeting, which is






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