Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642949
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem 13QC
Information technology has made it easier for managers to perform all of the following tasks except
Learning Objective 7
a. preparing performance reports that identify variances between actual and budgeted revenues and costs.
b. combining individual units' budgets into the companywide budget
c. sensitivity analyses.
d. removing budgetary slack from the budget.
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A company can expect to receive which of the following benefits when it starts its budgeting process?
a. The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
b. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
c. The budget helps motivate employees to achieve sales growth and cost-reduction goals.
d. All of the above
Control is the process that includes the following except:
A) Provides managers a means to assess results
B) Provides managers the means to prepare a budget
C) Provides feedback and acts as a learning tool for future decisions
D) Enables monitoring by managers
Benefits of Budgeting include all of the following EXCEPT:
A) Promotes analysis of results
B) Creates an early warning system
C) Facilitates coordination of activities within the company
D) Motivate personnel with challenging, frustrating, and unrealistic goals
Chapter 22 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
Ch. 22 - Prob. 1QCCh. 22 - A company prepares a five-year budget. This budget...Ch. 22 - Which of the following is the cornerstone of the...Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - The budgeted income statement is part of which...Ch. 22 - Prob. 9QCCh. 22 - Suppose Mallcentral sells 1,000 hardcover books...
Ch. 22 - Suppose Mallcentral sells 1,000 hardcover books...Ch. 22 - The budgeted balance sheet is part of which...Ch. 22 - Information technology has made it easier for...Ch. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - How is benchmarking beneficial?Ch. 22 - What is budgetary slack? Why might managers try to...Ch. 22 - Explain the difference between strategic and...Ch. 22 - Explain the difference between static and flexible...Ch. 22 - What is a master budget?Ch. 22 - In a manufacturing company, what are the three...Ch. 22 - Why is the sales budget considered the cornerstone...Ch. 22 - Prob. 10RQCh. 22 - What is the formula used to determine the amount...Ch. 22 - What are the two types of manufacturing overhead?...Ch. 22 - How is the predetermined overhead allocation rate...Ch. 22 - What is the capital expenditures budget?Ch. 22 - What are the three sections of the cash budget?Ch. 22 - Prob. 16RQCh. 22 - How does the master budget for a merchandising...Ch. 22 - Prob. 18RQCh. 22 - Prob. 19RQCh. 22 - Prob. 20RQCh. 22 - Budgeting benefits Learning Objective 1 List the...Ch. 22 - S22-2 Budgeting types
Learning Objective...Ch. 22 - Prob. S22.3SECh. 22 - S22-4 Preparing an operating budget—production...Ch. 22 - Prob. S22.5SECh. 22 - Prob. S22.6SECh. 22 - Prob. S22.7SECh. 22 - Prob. S22.8SECh. 22 - Prob. S22.9SECh. 22 - Prob. S22.10SECh. 22 - Prob. S22.11SECh. 22 - S22-12 Understanding the components of the master...Ch. 22 - S22-13 Preparing an operating budget—sales...Ch. 22 - Prob. S22.14SECh. 22 - Prob. S22.15SECh. 22 - Prob. S22.16SECh. 22 - Prob. S22.17SECh. 22 - Prob. S22.18SECh. 22 - Prob. S22.19SECh. 22 - Prob. S22.20SECh. 22 - Prob. E22.21ECh. 22 - Prob. E22.22ECh. 22 - Prob. E22.23ECh. 22 - Preparing an operating budget—direct materials,...Ch. 22 - E22-25 Preparing an operating budget—cost of goods...Ch. 22 - Prob. E22.26ECh. 22 - Preparing a financial budget—schedule of cash...Ch. 22 - Prob. E22.28ECh. 22 - E22-29 Preparing the financial budget-cash...Ch. 22 - Preparing the financial budget—budgeted balance...Ch. 22 - Prob. E22.31ECh. 22 - Prob. E22.32ECh. 22 - Prob. E22.33ECh. 22 - Prob. E22.34ECh. 22 - E22-35 Preparing a financial budget—cash...Ch. 22 - Prob. E22.36ECh. 22 - Using sensitivity analysis Learning Objective 7 1....Ch. 22 - Preparing an operating budget—sales, production,...Ch. 22 - Prob. P22.39APGACh. 22 - Preparing a financial budgetbudgeted income...Ch. 22 - Completing a comprehensive budgeting...Ch. 22 - Prob. P22.42APGACh. 22 - Prob. P22.43APGACh. 22 - P22-44A Preparing a financial budget—budgeted...Ch. 22 - Prob. P22.45APGACh. 22 - Prob. P22.46APGACh. 22 - Prob. P22.47BPGBCh. 22 - Prob. P22.48BPGBCh. 22 - Prob. P22.49BPGBCh. 22 - Prob. P22.50BPGBCh. 22 - Prob. P22.51BPGBCh. 22 - Prob. P22.52BPGBCh. 22 - Prob. P22.53BPGBCh. 22 - Preparing a comprehensive budgeting...Ch. 22 - Prob. P22.55BPGBCh. 22 - Using Excel for to prepare an operating budget...Ch. 22 - Prob. P22.57CPCh. 22 - Prob. 22.1TIATCCh. 22 - Prob. 22.1DCCh. 22 - Prob. 22.1EICh. 22 - Prob. 22.1FC
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- Which of the following is NOT true of the budgeting process? Question 8 options: Budgeting provides feedback to management to aid in assessing how well it's reaching its goals. Budgets force managers to plan for the future. Budgets force managers to consider relations among operations across the entire value chain. The performance report is prepared as part of the master budget.arrow_forwardThe first step of the budget process is: plan direct control feedback Static budget are often used by: production department. administrative departments. responsible centers. capital projects. A budget serves as a benchmark against which Actual results can be compared. Allocated results can be compared. Actual results become inconsequential. Allocated results become inconsequential. The following are characteristics of an effective budget, EXCEPT: Goals should be attainable. Evaluations should be made carefully with opportunities to explain any failures. They should be properly applied to avoid negative effects. Customers affected by a budget should be consulted when it is prepared. Which of the following is NOT a benefit of budgeting? It forces managers to look to the future. It plays an important role in communication within the organization. It serves an important role in motivating and rewarding employees. It encourages executives to build up organizational slack.…arrow_forwardFocusing on improving the activities that are showing significant differences between budgeted and actual results is: A.quantifying plans B.management by exception C.cash management D.creating benchmarksarrow_forward
- When budgets are used to evaluate performance and to set limits on spending, the process will often result in departments adding something “extra” to ensure the budgets will be met. This “extra” is Budgetary slack Strategic planning Management by objectives Continuous budgetingarrow_forwardThe following if-then statements were taken from a Balanced Scorecard: a. If employee capabilities increase, then process time decreases. b. If process time decreases, then customer retention will increase. c. If customer retention increases, then market share will increase. d. If market share increases, then revenues will increase. Required: 1. Identify the lead and lag variables, and explain your reasoning. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives. 3. Using the first if-then statement, explain the concept of double-loop feedback.arrow_forwardRecommend to management an AIS system diagram presenting the Budget Profit Planning Process using the 6-level planning. In the end, part of the diagram integrates the mathematical models or formulas in determining budgeted operating profit.arrow_forward
- Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people, identify several negative aspects if budgets are not implemented properly. Additionally, please discuss in detail how the budgeting process is essential to managers.arrow_forwardBudgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following situations will likely lead to human behavior problems? a. allowing employees the opportunity to be a part of the budget process b. setting goals too loosely, creating a budgetary slack c. setting goals that are consistent across the firm d. setting goals that are reasonable and attainablearrow_forwardWhich of the following is true in a bottom-up budgeting approach? Group of answer choices departments determine their needs and relate them to the overall goals supervisors tell departments their budget amount and the departments are free to work within those amounts departments budget their needs however they see it every expense needs to be justifiedarrow_forward
- 21arrow_forwardIt is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: Define the following terms: iii. Feed -back loop. Explain this as it applies in the Control Circle. iv. Identify and explain in detail features of feed- back which add value to the management of an institution.arrow_forward1. Which of the following is NOT an objective of the budgeting process? a. O a. To communicate management's plans throughout the entire organization O D.To provide a means of allocating resources to those parts of the organization where they can be used most effectively С. To ensure that the company continues to grow OTo uncover potential bottlenecks before they occurarrow_forward
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