True or False 1. Budgeting systems should be subjected to the cost-benefit approach.
True or False
1. Budgeting systems should be subjected to the cost-benefit approach. 2.The most important cost of a modern budgeting system is forced management planning in general, the starting point in preparing a
3. volume, if the company has a relatively large manufacturing capacity and operates in? highly competitive industry.
4. A usually effective way of forecasting sales is to rely entirely on the predictions of the individual sales people and sales managers of the organization.
5. The operating budget includes the budgeted balance sheet and the sales budget.
6. The principal reason for using budgets is to avoid running out of cash or borrowing too much money.
7. Financing decisions related to budgeting involve acquisition and use of scarce resources.
8. The best way to establish budget figures is to use last year's actual cost and activity data as this year's budget estimates.
9. Budgeting is generally of little value to smaller organizations.
10. The usual starting point in budgeting is to make forecast of industry sales.
11. Budget reports comparing actual results with planned objectives should be prepared weekly to be most effective.
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