The probable benefit that the company receives while starting the process of budgeting.

Question

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Answer 1

Question

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

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Students have asked these similar questions

The records of Earthly Goods provided the following information for the year ending December 21, 2020. At Cost At Retail January 1 beginning inventory $ 9,42,700 $ 18,54,300 Purchases Purchase returns $ 66,57,660 $1,27,97,400 $ 2,38,700 Sales $1,05,600 $ 1,09,91,400 $ 89,200 Sales Returns Required: Prepare an estimate of the company's year-end inventory using the retail method.

Note: Option A is incorrect. Need correct option

What is the Sarah's capital balance at the end of the year on this accounting question?

Answer 2

Question

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

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Answer 3

Question

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

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Answer 4

Question

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

Answer 6

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.

Answer 7

Chapter 22, Problem 1QC

To determine

: The probable benefit that the company receives while starting the process of budgeting.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Solution:d) All of the above.

Given: 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 and cost-reduction goals.

d) All of the above.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

:

The budget of a company is the plan set in advance for the allocation of resources and how these resources are going to be utilized to reach a predetermined goal. So, it becomes a prescribed standard which is used to compare with the actual results for the evaluation of performance.

The budget is a predetermined plan for achieving the predetermined objectives of a company. The process of planning helps in avoiding all the mistakes and drawbacks in the previous years and to be proactive in reaching the goals of the company. Thus, it helps to compare with the actual results for performance evaluation.