Which of the following statements about budgets is FALSE ? Budgets help the company manage risks . Incurring actual costs at a level in excess of the amount in the flexible budget for the actual level of operation always results in an unfavorable variance Budgets help move the company from an informal reactive style to a more formal proactive style of management Incurring actual costs at a level in excess of the amount planned in the original static budget always results in a favorable variance . Budgets help establish responsibility and evaluate managers performance .
Which of the following statements about budgets is FALSE ? Budgets help the company manage risks . Incurring actual costs at a level in excess of the amount in the flexible budget for the actual level of operation always results in an unfavorable variance Budgets help move the company from an informal reactive style to a more formal proactive style of management Incurring actual costs at a level in excess of the amount planned in the original static budget always results in a favorable variance . Budgets help establish responsibility and evaluate managers performance .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which of the following statements about budgets is FALSE ?
Budgets help the company manage risks .
Incurring actual costs at a level in excess of the amount in the flexible budget for the actual level of operation always results in an unfavorable variance
Budgets help move the company from an informal reactive style to a more formal proactive style of management
Incurring actual costs at a level in excess of the amount planned in the original static budget always results in a favorable variance .
Budgets help establish responsibility and evaluate managers performance .
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