. ________ An important part of the planning process is the creation of a budget. 2. ________ Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing. 3. ________ Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget p
. ________ An important part of the planning process is the creation of a budget. 2. ________ Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing. 3. ________ Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget p
. ________ An important part of the planning process is the creation of a budget. 2. ________ Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing. 3. ________ Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget p
An important part of the planning process is the creation of a budget.
2.
________
Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing.
3.
________
Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget period.
4.
________
The starting point of the planning process is management’s strategic plan or vision of what they want the organization to achieve over the long term.
5.
________
A short-term objective is a specific goal that managers want to achieve in more than a year to reach their long-term goals.
6.
________
Planning is the forward-looking phase of the planning and control process that involves setting long-term objectives and defining short-term tactics that will help to achieve them.
7.
________
Budgets should not be used to motivate and reward employees.
8.
________
Budgets play an important communication role within organizations. They provide a mechanism for managers to share expectations and priorities for the future.
9.
________
Budgets also provide useful benchmarks for evaluating and rewarding employee performance.
10.
________
One of the major advantages of budgeting is that it forces managers to look to the future.
B) Organize the following budgets in order of preparation by placing the number before it:
Cash budget
Selling and administrative expense budget
Manufacturing overhead budget
Direct materials purchase budget
Budgeted balance sheet
Sales budget
Direct labor budget
Budgeted income statement
Budgeted cost of goods sold
Production budget
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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