E10.1 (LO 1, 2), K Connie Rice has prepared the following list of statements about budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All budget reports are prepared on a weekly basis. 3. Management uses budget reports to analyze differences between actual and planned results and to determine their causes. 4. As a result of analyzing budget reports, management may either take corrective action or modify future plans. 5. Budgetary control works best when a company has an informal reporting system. 6. The primary recipients of the sales report are the sales manager and the production supervisor. 7. The primary recipient of the scrap report is the production manager. 8. A static budget is a projection of budget data at a single level of activity. 9. Top management's reaction to unfavorable differences is not influenced by the materiality of the difference. 10. A static budget is not appropriate in evaluating a manager's effectiveness in controlling costs unless the actual activity level approximates the static budget activity level or the behavior of the costs is fixed. Instructions Identify each statement as true or false. If false, indicate how to correct the statement.

E10.1 (LO 1, 2), K Connie Rice has prepared the following list of statements about budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All budget reports are prepared on a weekly basis. 3. Management uses budget reports to analyze differences between actual and planned results and to determine their causes. 4. As a result of analyzing budget reports, management may either take corrective action or modify future plans. 5. Budgetary control works best when a company has an informal reporting system. 6. The primary recipients of the sales report are the sales manager and the production supervisor. 7. The primary recipient of the scrap report is the production manager. 8. A static budget is a projection of budget data at a single level of activity. 9. Top management's reaction to unfavorable differences is not influenced by the materiality of the difference. 10. A static budget is not appropriate in evaluating a manager's effectiveness in controlling costs unless the actual activity level approximates the static budget activity level or the behavior of the costs is fixed. Instructions Identify each statement as true or false. If false, indicate how to correct the statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ma1. Which of the following statements is true? A. Budget reports comparing actual results with planned objectives should be prepared only once a year B. OA static budget is most useful for evaluating a manager's performance in controlling variable costs C. The master budget is not used in the budgetary control process D. OA static budget ignores data for different levels of activity
[1] The major objectives of any budget system are to A. Foster the planning of operations, provide a framework for performance evaluation, and promote communication and coordination among organization segments. B. Define responsibility centers, facilitate the fixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates. C. Define responsibility centers, provide a framework for performance evaluation, and promote communication and coordination among organization segments. D. Foster the planning of operations, facilitate the fixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates.
Budgets are the primary instrument managers use for planning and maintaining an organisation's financial management. A formal written declaration of a manager's goals for a time period in financial terms, and a budget is described as a formal written statement. In relation to the above, critically appriase four (4) guidelines with examples on preparing a good buget for a business during the COVID-19 pandemic.
Q3:-what is the difference between budgets and budgeting, Reinforce your answer with examples , dates, and equations:-
1. What is the difference between strategic and operational plans?2. What is the purpose of financial plans?3. What are the component of an operations plans?4. What are the pro forma financial statements?5. What is the percentage of sales forecasting method? What are some of the limitations financial analysis should be aware of in applying this method?6. What is a cash budget? What are the usual steps involved in preparing a cash budget?7. Explain the difference between deterministic and probabilistic financial planning models.
43. A flexible budget: Group of answer choices a. presents the plan for only one level of activity and does not adjust to changes in the level of activity. b. resents the plan for a range of activity so that the plan can be adjusted for changes in activity levels. c. presents a statement of expectations for a period of time but does not present a firm commitment. d. classifies budget requests by activity and estimates the benefits arising from each activity.
It is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: Define the following terms: iii. Feed -back loop. Explain this as it applies in the Control Circle. iv. Identify and explain in detail features of feed- back which add value to the management of an institution.
Describe the 5 types of budgets listed for these Wk 3 Financial Exercises: Problem Set 2, Part 1. In your descriptions, include the budget's objective, how the budget assists an organization in managing its financial activities, and what types of data need to be included in that specific budget. Type of Budget Cash Flow Operating Sales Static Financial Description Insert cash flow description. Insert operating description. Insert sales description. Insert static description. Insert financial description.
Ac. Please answer fast
Which of the following statements is not correct? The revenue budget is the starting point in preparing the master budget. The revenue budget is constructed by multiplying the expected sales in units by the sales price. The production budget is not based on the revenue budget. The cash budget is used to determine whether the firm will have enough cash on hand.
Which of the following statements is NOT correct? a. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period. b. The sales budget is constructed by multiplying the expected sales in units by the sales price. c. The sales budget is the starting point in preparing the master budget. d. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
true and false a. Developing a budget is a critical step in planning any economic activity. This is true for businesses, for governmental agencies, and for individuals. (……….) b. The sales budget shows the projected sales in units and the total expected sales revenue. (……….)