Please solve fast When higher level management fails to review self-imposed budgets, which one of the following is likely toОCcur:а.Management will be able to identify faulty employeesO b. None of the given answersO c.Key budgeted figures such as revenues and expenses may intentionally be understated oroverstated.O d. Might cause lower-level managers to create unbiased budgetsO e. Proper use of budgets.

The budgeting process begins where the previous accounting period ends and the new…

When higher level management fails to review self-imposed budgets, which one of the following is likely to Occur: O a. Management will be able to identify faulty employees O b. None of the given answers c. Key budgeted figures such as revenues and expenses may intentionally be understated or overstated. O d. Might cause lower-level managers to create unbiased budgets e. Proper use of budgets.

When higher level management fails to review self-imposed budgets, which one of the following is likely to Occur: O a. Management will be able to identify faulty employees O b. None of the given answers c. Key budgeted figures such as revenues and expenses may intentionally be understated or overstated. O d. Might cause lower-level managers to create unbiased budgets e. Proper use of budgets.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1MC: Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing...

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Which of the following statements is true? I. To provide a basis for comparison of actual performance is one primary purpose of budgeting. II. Ineffective budgets and/or control systems are characterized by the use of budgets as a planning tool only and disregarding them for control purposes III. For better management acceptance, the flow of data to be used for budgeting should begin with Lower levels of management IV. Actual results need not be compared with plan, since the process ends after budget is approved. a. I and II b. II and III c. III and IV d. None of the above
1 i. Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs that do not represent their best estimate or expectations of what will actually occur. ii. Suggest, as a budget accountant, what procedures you would advise in order to minimize the likelihood of such biased estimate arising.
When a manager is prohibited to exceed its spending from the allowable budget, it may Select the correct response: eliminate the need for comparisons of budgeted and actual amounts usually reduce the need to prepare a cash budget. result to improved profitability of the company cause harm to the performance of the company
A budget is most likely to be effective if it is not used to evaluate a manager's performance. employees and managers at the lower levels do not get involved in the budgeting process. it is used to assess blame when things do not occur according to plans. it has top management support.
Which of the following statements is false? Select one: a. According to responsibility accounting, all managers should be held responsible for all asbects of the master budget. o b. Budgets helps uncover potential bottlenecks. c. Budgeting forces managers to think about and plan for the future. o d. One benefit of following a well-designed budgeting process is Improved performance evaluations. e. Budgeted cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Which of the following activities would be classified as a batch-level activity? Select one: a. none of the given answer. b. Designing a new product. c. Milling a part required for the final product. d. Setting up equipment. e. Training employees.
Which of the following factors will most likely have a negative impact on a manager's motivation with regards to the budget? O The budget targets are challenging but attainable. O The manager's input was highly regarded throughout the budget vetting process. O The budget includes some budgetary slack. O The budget provides too little scope for managers to perform their dutics,
Which of the following statements are TRUE? I. Responsibility accounting attempts to assign blame for problems to a specific manager.II. One benefit of a budget is that it helps managers gather relevant information for improving future performance.III. Challenging budgets tend to motivate improved performance.IV. Controllability may be difficult to pinpoint because some costs are the result of the market, not the manager.
Explain the different reasons why a manager might submit a biased budget estimate.
Which of the following statements relating to budgeting is NOT true? a) A budget is a formal document that quantifies a company’s plans for achieving its goals. b) Budgets are useful in the control process because they provide a basis for evaluating performance. c) A bottom-up approach to budgeting involves substantial input from lower level managers. d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.
If a manager is not able to meet the budget and it has been ________________ , the manager can alwayssay that the budget was unreasonable or unrealistic to start with, and therefore was impossibleto meet.
19. Which of the following is false? (a) A budget is a financial plan for a period of time. (b) Budgeting and responsibility accounting are closely related. (c) Goal congruence means that managers of different departments often have competing objectives. (d) The budgeting process should have a significantly positive effect on a company's profit as compared with no budgeting at all.
Which of the following statements about budgeting is incorrect? a. Budgets provide direction and coordination b. Budgets motivate staff c. A budget is a financial plan. d. A budget looks back and review performance.