Which of the following is true of budgeting? a.Budgeting relies on the control cycle to design the planning cycle for future action. b.Budgeting eradicates the need for keeping a buffer against uncertainties in demand. c.Budgeting focuses only on long-term objectives as covered by the planning cycle. d.Budgeting forces management to plan for the future. e.Budgeting creates a plan of action only in terms of production units.

Q: Some critics of budgeting believe that budgets are effective tools for planning but not for…

A: The question is based on the concept of budgeting and its utilization in management decision making.…

Q: Top-down budgeting is preferred to a bottom-up approach, especially to monitor controllable costs.…

A: In a top-down budgeting approach, the budget is created by the top management of the company and…

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: What are some limitations of the budgeting process?

A: Budgeting is an important exercise that is performed in most of the organizations. Budgeting has lot…

Q: What are the advantages and disadvantages of the participatory approach to budgeting?

A: Participative budgeting is a budgeting process in which the people who are in the lower levels of…

Q: ‘Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: A budgeting system helps an organization to plan and decide the amount to be spent in a particular…

Q: What factors can contribute to unsuccessful budgeting? How can these situations be avoided?

A: Introduction: Budgeting is a collection of tasks done to plan a budget. A budget is a quantitative…

Q: What behavioral problems are associated with set- ting a budget too loosely?   2. Why should the…

A: Budget is a projected statement of various data that include sales expenditure Total production or…

Q: Budgets are the best management tool, but I think they can cause arguments and disagreements between…

A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Q: Describe one objective of the budgeting. Discuss the consequences of setting budget goals too…

A: Answer:- Budget:- A budget is basically an estimate of income and expenses for a given future period…

Q: Which of the following statements are TRUE? 1. Responsibility accounting attempts to assign blame…

A: Statement I: Responsibility accounting helps identify and track costs that specific managers can…

Q: What are some examples of effective monitoring and control practices, and how do they help address…

A: Managers take necessary steps to control the costs in a particular accounting period. It is known as…

Q: Budgeting can be an important management tool if implemented properly. Identify several positive…

A: A plan that is written down and followed to determine how one will spend money on a monthly basis is…

Q: With one exception, the following objectives are accomplished by budgeting. Which of these…

A: Budgeting is to make planning for the future and budget provides the direction and guidelines for…

Q: Define Zero Base Budgeting. What are the steps involved in this?

A: The company prepares the budget to make a plan for how the money is spent. Budgeting is very…

Q: What are some challenges and weaknesses that a firm may find in the budgeting process?

A: The lack of proper monitoring and review, lack of clear policy and procedures on budgets, poor…

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: indicate yes if it describes a potential benefit of budgeting orno if it describes a potential…

A:

Q: Discuss the factors that are likely to cause managers to submit budget estimates of sales and costs…

A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…

Q: Budgeting has a number of different purposes including: Planning; Control; Performance evaluation;…

A: A budgeting system helps an organization to plan and decide amount to be spent in a particular…

Q: indicate yes if it describes a potential benefit of budgeting orno if it describes a potential…

A: Budgeting is very important process in managing future financing affairs of a business enterprise.…

Q: Using budgets as a performance benchmark is often since the actual performance will most likely…

A: Using budgets as a performance benchmark is often challenging or unreliable since the actual…