Why is it common to find slack in budgets?

Q: Briefly describe the type of human behavior problems that might arise if budget goals are set too…

A: Budget is a tool which is used in the planning and controlling process by estimating the revenue and…

Q: Why might managers find a flexible-budget analysis more informative than a static-budget analysis?

A: Static Budget: Static budget is a fixed budget prepared for a particular period of time without…

Q: What is a self-imposed budget?

A: Budget:   It is a statement of estimated revenue and expenditure for a specific period.

Q: How does a continuous budget work? Is a rolling budget the same thing?

A: A budget is used to forecast a company's financial results and financial status for the future. It's…

Q: for a person to commit budgetary slack

A: Budgetary slack refers to the concept when the estimated expenses or revenues of a project are…

Q: What are some of the risks of failing to create and manage budgets?

A:

Q: Explain the difference between static and flexible budgets.

A: Flexible Budgets: Flexible budgets are prepared for various levels of activities or outputs. This…

Q: what is dysfuncional behavior and budgetary slack？

A: Dysfunctional behavior is the behavior of the individual that is not in conformity with the…

Q: What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution…

A: Self-imposed budgets: It refers to the budgets in which personnel have responsibility over the…

Q: Budgets are half-used if they serve only as a planning device? Explain.

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: What assumption is implicitly made about cost behavior when all of the items in a budget areadjusted…

A: Definition: Static Budget: A budget that doesn’t changes with the volume of activity throughout the…

Q: What assumption is implicitly made about cost behavior when actual results are directly compared to…

A:

Q: What is the difference between an imposed budget and a participatory budget? Define and explain a…

A: Introduction A budget is a financial statement that the management develops to evaluate the…

Q: Describe scenarios/situations when it is appropriate and when it is not appropriate to use a static…

A: Static budget is also called fixed budget. Static budget does not change with the change in the…

Q: difference between a flexible budget and a static budget?

A: A budget can be defined as an estimation or forecast of the income, revenue, and expenses for a…

Q: What are the limitations of the traditional budget? Despite the limitations, why it is still widely…

A: A budget is a financial plan used by organizations for a particular period of time, generally a…

Q: what is the difference between bottom up and beyond budgetin

A: Budgeting is the process of determining the expected costs and revenues for a particular period by…

Q: How does the static budget affect the cost and efficiency variances?

A: Definition:   Static budget: Static budget is a master budget that is prepared for only one level of…

Q: What is the main difference between static and flexible budgets?

A: A budget is a tool that helps the entity to  achieve its predetermined objectives through a…

Q: What is the advantage of using a flexible budget?

A: Budget is prepared at the start of the year so as to estimate the cost of producing any product that…

Q: What are some of the dangers associated with failing to develop and manage budgets?

A: The following are the dangers associated with failing to set and manage budgets: 1) Incorrect…

Q: What is a fixed budget

A: Budget: A budget is a forecast of revenue and expenses for a specific future period of time that is…

Q: How is a flexible budget used?

A:

Q: What behavioral problems are associated with setting a budget too loosely

A: Budget:   Budget is an effective tool to present the estimated actions for future time period. It…

Q: What are some of the dangers associated with failing to design and manage budgets properly?

A: Preparation of the budget helps the business entities in achieving their goals/ objectives. Budgets…

Q: Why Do Companies Need Flexible Budgets?

A: Flexible Budgets: Flexible budget refers to the budget that is prepared for various levels of…

Q: Why is it difficult to interpret a difference between how much expense was budgeted and how much was…

A: Spending variance: The difference between the actual and budgeted expenses is known as spending…

Q: Why use a flexible budget?

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…

Q: Define the term budgetary slack, and briefly describe a problem it can cause.

A:

Q: Why is flexibility very important for PFG’s budgeting system to be effective?

A: PFG stands for Penn Fuel Gas, Inc. It is a public utility holding company selling natural gas,…

Q: Explain the situation: "Managing Without Budgets: Going Beyond Budgeting"

A: Introduction: Budgeting isn't the only thing that has to be done. Beyond Budgeting is the concept of…

Q: what are the differences between top down and beyond budgeting?

A: Budgeting is the process of estimating the income and expenditure to control the actual income and…

Q: How can an organization help to reduce the problems caused by budgetary slack?

A: Definition: Budgetary slack: The manager intentionally creates a slack into the budget as to avoid…

Q: what is meant by a “limiting budget factor”

A: Solution: Limiting budget factor is a constraint that prevents expanding the budget when prepared.

Q: What is true of budgets?

A: Budget:  Budget is an estimation of revenue and expenses over a specific period of time. It's a…

Q: Why is the budget report important?

A: A budget report is the official document which is prepared by the accountant which shows how the…

Q: Describe the various behavioral problems that are associated with setting a budget too "loosely."

A: If too tightly budgets are set then the employees are unable to meet targets because they are…

Q: What is Zero-based Budget?  What is static and Flexible Budgets?

A:

Q: Can you explain what a rolling budget is?

A: Budget:   A budget is a statement of expected revenues and expenditures of the business for a…

Q: since flexible budget is more accurate in measuring performance, can company just develop flexible…

A: A static budget is the starting point for the company. When the business term is six months, for…

Q: What is budgetary slack? Why might managers try to build slack into their budgets?

A: Budgeting is an important part of the business process. Without budgeting a business cannot tract…

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.