With one exception, the following objectives are accomplished by budgeting. Which of thesestatements is NOT true about budgeting objectives?Shows management's operating plans for the coming period.O Locks in company spending for the period.O Forces all levels of management to think ahead, anticipate results, and take action to remedypoor results.O Formalizes management's plans in quantitative terms.

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

Answered: With one exception, the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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
When a company develops and implements a master budget, there is a tendency to incentivize adherence to the goal with bonuses or by tying the employee compensation plans to the achievement of the budget goals. What are some opportunities and risks of these financial incentive programs?
While the operating budgets reflect the operating activities of the company, the financial budgets reflect the financing and investing activities. Group of answer choices True False
Why does a company's budget need to be closely linked to the needs of good strategy execution? Why might a change in strategy call for budget reallocations?
Briefly (5-10) lines) give a written amswer to the following question: What function does an annual budget serve as a part of a company's performance measurement system and how can a budget be used to encourage goal congruence (or 'alignment')?
The objectives of budgeting are to:a. Establish specific goals for future operations b. Execute plans to achieve the goalsc. Measure performance by periodic comparison of actual with budgeted results d. All of the above
All of the following is related to the controlling function of management except: a. Performance reports b. Gathering feedback c. None of the given answers d. Establishing goals e. Comparison between actual and budgeted results
Which of the following is not a benefit of budgeting? It allows for coordination between different departments within a firm. It compels managers to develop objectives and to plan allocating resources to achieve the objective. It provides performance evaluation and feedback. It reduces the need for analysis with regard to company expenses.
What is a good response to: "What do you think are the key components of a successful budgeting process within an organization? Are there any specific challenges that organizations may commonly face when implementing a budget?" The budget should align with the organization's strategic goals and objectives. Understanding what the organization aims to achieve in the short and long term is crucial for creating a budget that supports these goals. Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound to ensure clarity and focus. Reviewing past financial performance helps in understanding trends, cost drivers, and revenue patterns. This historical data is crucial for making informed assumptions. Also, Establishing realistic assumptions about revenues, costs, market conditions, and economic factors is essential. Accurate forecasting techniques help predict future financial performance .A successful budgeting process requires a balanced approach that combines…
1. If a company uses participative budgeting, which group should prepare the initial set of budget dollar amounts? a. Budget committee b. Operating department managers c. Top management d. Accounting department
Give me a conclusion pargraph as to why budgeting impact managers' behavior
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.

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