efine breakeven point for a business and how it is calculated. Why is so much emphasis placed on budgets in today's corporate america? Do you think that budgets are a good financial projection, or do you think that most businesses create underestimated budgets in order to be able to meet financial goals? Discuss and give examples.

efine breakeven point for a business and how it is calculated. Why is so much emphasis placed on budgets in today's corporate america? Do you think that budgets are a good financial projection, or do you think that most businesses create underestimated budgets in order to be able to meet financial goals? Discuss and give examples.

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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Similar questions

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem? Allowing employees the opportunity to be a part of the budget process Allowing goals to be so low that employees develop a "spend it or lose it" attitude Setting goals too tightly making it difficult to meet performance expectation Setting goals among managers that conflict with one another
How is corporate budgeting similar to personal budgeting?
Budgets are useful only for small companies that can estimate sales with accuracy. Do you agree with this statement?
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. (……….)
On January 1, Shalom Company has 5,000 units of Product Peace on hand. During the year, the company plans to sell 15,000 units of Product Peace and plans to have 6,500 units on hand at year end. How many units of Product Peace must be produced during the year?
Efficient and effective use of limited resources is the key to success in today’s economy. Assisting in the budget planning process is a major task for managerial accountants. All organizations have limited resources, but whom in the organization should be involved in the budgeting process?
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Does the manager of a Samsung distribution center participate in long-term budgeting? Explain.
“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not.
Regarding Budgets, which of the following statements is true? a. A budget is a business plan for the short term. O b. A periodic budget is prepared for a particular period of time. O c. Budgets are based on forecasts. However, the performance of a manager should be compared to a target that reflects the actual environment. O d. All the answers are true.
Why would a company use zero-based budgeting,given that it requires more time and effort from managersthroughout the company?
Why does preparing the master budget require a committee? Can't a medium-large company get by with directives from the CEO/CFO? What are some of the pitfalls under this scenario? When are sales and cost variances favorable?