Budgeting MCQs

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All of the following are advantages of the use of budgets in a management control system except that budgets






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In the budgeting and planning process for a firm, which one of the following should be completed first?






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Each organization plans and budgets its operations for slightly different reasons. Which one of the following is not a significant reason for plannin...






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Which one of the following best describes the role of top management in the budgeting process? Top management






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Which one of the following is usually not cited as being an advantage of a formal budgetary process?






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The major objectives of any budget system are to






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One of the primary advantages of budgeting is that it






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A budget helps a company control costs by setting cost guidelines. However, a budget also performs the function(s) of






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When comparing performance report information for top management with that for lower-level management,






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An improperly executed budget process might have the effect(s) of






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Ineffective budget control systems are characterized by






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Which of the following statements regarding budgets is false?






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A planning calendar in budgeting is the






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A budget manual, which enhances the operation of a budget system, is most likely to include






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Which one of the following is not an advantage of a participatory budgeting process?






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In developing the budget for the next year, which one of the following approaches would produce the greatest amount of positive motivation and goal co...






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Which one of the following statements concerning approaches for the budget development process iscorrect?






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Rock Industries has four divisions. In the quest to develop a more achievable budget for the coming year, the chief executive officer has elected to ...






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When developing a budget, an external factor to consider in the planning process is






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An advantage of participative budgeting is that it






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The primary role of the budget director and the budgeting department is to






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Which one of the following is not considered to be a benefit of participative budgeting?






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The budgeting technique that is most likely to motivate managers is






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Which one of the following is most important to a successful budgeting effort?






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The major disadvantage of a budget produced by means of a top-down process is






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All of the following are criticisms of the traditional budgeting process except that it






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The following sequence of steps is employed by a company to develop its annual profit plan: ? Planning guidelines are disseminated downward by top man...






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Which one of the following items would most likely cause the planning and budgeting system to fail? The lack of






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All of the following are advantages of top-down budgeting as opposed to participatory budgeting, except that it






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Marietta Thomas, Amador Corporation’s vice president of planning, has seen and heard it all. She has told the corporate controller that she is ....v...






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Budgeting problems where departmental managers are repeatedly achieving easy goals or failing to achieve demanding goals can be best minimized by esta...






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All of the following are disadvantages of top-down budgeting as opposed to participatory budgeting, except that it






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Sub optimal decision making is not likely to occur when






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The budgeting process should be one that motivates managers and employees to work toward organizational goals. Which one of the following is least lik...






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The best explanation of how the efficient allocation of organizational resources is planned during the budgeting process is that a budget






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A companys annual budget provides information that can impact the companys






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Which one of the following is an advantage of using the budgeting process to judge performance?






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Which one of the following is not a characteristic of a successful budget process?






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Which one of the following statements best describes budgetary slack?






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The finance department of a large company has prepared a master budget with very limited expense budgets for each department. The department managers ...






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Jura Corporation is developing standards for the next year. Currently XZ-26, one of the material components, is being purchased for $36.45 per unit. I...






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After performing a thorough study of Michigan Companys operations, an independent consultant determined that the firms labor standards were probably...






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When compared with ideal standards, practical standards






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Diana Stinson, Cherry Valley, Inc.s factory manager, had lost her patience. Six months ago, she appointed a team from the production and service dep...






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All of the following statements concerning standard costs are correct except that






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One approach for developing standard costs incorporates communication, bargaining, and interaction among product line managers; the immediate supervi...






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Granger Company is reviewing its standard machine hours per unit to use in its budget for the upcoming year. The machine manufacturers specifications...






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The budget that describes the long-term position and objectives of an entity within its environment is the






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A manufacturer makes picture frames that require one sheet of glass each. Each sheet of glass comes from one larger sheet that is cut into four pieces...






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All of the following are advantages of the budgeting process except that the budget






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Herrington Industries is able to sell up to 50,000 units of product X each month. Engineers are currently in the process of studying labor movement t...






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In an organization that plans by using comprehensive budgeting, the master budget is A.






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While an operating budget is a key element in planning and control, it is not likely to






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In preparing a corporate master budget, which one of the following is most likely to be prepared last?






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The master budget process usually begins with the






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All of the following are considered operating budgets except the






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Which one of the following items is the last schedule to be prepared in the normal budget preparation process?






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The master budget






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The preparation of a comprehensive master budget culminates with the preparation of the






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Wilson Company uses a comprehensive planning and budgeting system. The proper order for Wilson to prepare certain budget schedules would be






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Which one of the following may be considered an independent item in the preparation of the master budget?






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The Yummy Dog Bone Company is anticipating that a major supplier might experience a strike this year. Because of the nature of the product and emphas...






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The starting point for creating a master budget for a proprietary secretarial school would be






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Which of the following is normally included in the financial budget of a firm?






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The financial budget process includes






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The foundation of a profit plan is the






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The operating budget process usually begins with the






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Adams Manufacturing, Inc., produces farm tractors. The details of its budgeted cost of goods manufactured schedule should come from which of the foll...






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In developing a comprehensive budget for a manufacturing company, which one of the following items should be done first?






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When budgeting, the items to be considered by a manufacturing firm in going from a sales quantity budget to a production budget would be the






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Which one of the following schedules would be the last item to be prepared in the normal budget preparation process?






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After the goals of the company have been established and communicated, the next step in the planning process is development of the






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The production budget process usually begins with the






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Individual budget schedules are prepared to develop an annual comprehensive or master budget. The budget schedule that would provide the necessary inp...






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Which one of the following items should be done first when developing a comprehensive budget for a manufacturing company?






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There are various budgets within the master budget cycle. One of these budgets is the production budget. Which one of the following best describes the...






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The budget that is usually the most difficult to forecast is the






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When sales volume is seasonal in nature, certain items in the budget must be coordinated. The three most significant items to coordinate in budgeting ...






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Maximilian Computer Company uses a comprehensive budgeting system in planning its annual operations. Which of the following best describes the informa...






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Which one of the combinations listed correctly depicts the chronological order of preparation for the following budgets? I. Cost of goods sold budge...






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Which one of the following best describes the order in which budgets should be prepared when developing the annual master operating budget?






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When preparing the series of annual operating budgets, management usually starts the process with the






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Which of the following is normally included in the operating budget?






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Which budget is prepared after the creation of the cash budget?






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Which one of the following is not an advantage of activity-based budgeting?






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An advantage of incremental budgeting when compared with zero-based budgeting is that incremental budgeting






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The major appeal of zero-based budgeting is that it






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A continuous (rolling) budget






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A systemized approach known as zero-based budgeting (ZBB)






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The major feature of zero-based budgeting (ZBB) is that it






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A continuous profit plan






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Zero-based budgeting forces managers to






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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 budgeti...






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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...






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Medico has found that its annual budgets are quickly outdated once actual data is recorded. Sometimes actual preparations have already begun for the ...






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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 ...






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






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Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertainty in unit sales volume...






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






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