Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses

Question

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Answer 1

Textbook Question

Chapter 7, Problem 1MC

Which of the following is not a part of budgeting?

A. planning

B. finding bottlenecks

C. providing performance evaluations

D. preventing net operating losses

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

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Financial data for Hunger Games Company for last year appear below: Hunger Games Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $120,700 $220,000 Accounts receivable 225,000 475,000 Inventory 317,000 390,000 Plant and equipment (net) 940,000 860,000 Investment in Katniss Company 100,000 98,000 Land (undeveloped) 198,000 65,000 Total assets $1,900,700 $2,108,000 Liabilities and owners' equity: Accounts payable $178,700 $8,000 Long-term debt 512,000 600,000 Owners' equity 1,210,000 1,500,000 Total liabilities and owners' $1,900,700 $2,108,000 equity

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Answer 2

Textbook Question

Chapter 7, Problem 1MC

Which of the following is not a part of budgeting?

A. planning

B. finding bottlenecks

C. providing performance evaluations

D. preventing net operating losses

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

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Answer 3

Textbook Question

Chapter 7, Problem 1MC

Which of the following is not a part of budgeting?

A. planning

B. finding bottlenecks

C. providing performance evaluations

D. preventing net operating losses

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

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Answer 4

Textbook Question

Chapter 7, Problem 1MC

Which of the following is not a part of budgeting?

A. planning

B. finding bottlenecks

C. providing performance evaluations

D. preventing net operating losses

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

Answer 8

Expert Solution & Answer

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Introduction:

Planning and controlling are very important aspects of the management of a company. Budgeting is nothing but a way to reach the company’s goals by planning and controlling the activities related to revenues, expenses and other financing options wherein they show which areas are profitable, unprofitable or are not good for the anticipated goals. Communication, planning, evaluation and controlling are advantages of budgeting that are useful for the company.

To choose:

The correct answer from the given options that is not a part of budgeting

Answer 12

Answer to Problem 1MC

The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Answer 13

Explanation of Solution

Explanation for correct answer:

Preventing net operating loss is not a part of budgeting as the budget is prepared towards finding realizable goals. Budgets are prepared to know both profitable as well as unprofitable areas hence preventing losses would not help in proper forecasting.

Explanation for incorrect answers:

Planning, finding and solving bottlenecks, providing performance evaluations are all parts of budgeting. Bottlenecks are predicted by the budget and management strives towards solving the issues to meet the sales goals.Planning is an integral part of budgeting as it is necessary to evaluate the performances of both long term as well short term financial goals. It helps in knowing the position of the company in the market. It also helps the manager in understanding the performances of each department and managing the departments. It helps in allocating resources in a planned manner so that there is no wastage and they are used to meet the sales and manufacturing goals. The departments compare forecasted budgets with the actual ones.

Conclusion:

Hence, preventing net operating losses is not a part of budgeting because when budget is compared with the actual results, it must give appropriate goals.

Answer 14

Ch. 7 - Which of the following is not a part of budgeting?...Ch. 7 - Which of the following is an operating budget? A....Ch. 7 - Which of the following is a finance budget? A....Ch. 7 - Which approach is most likely to result in...Ch. 7 - Which approach requires management to justify all...Ch. 7 - Which of the following is true in a bottom-up...Ch. 7 - The most common budget is prepared for a...Ch. 7 - Which of the operating budgets is prepared first?...Ch. 7 - The direct materials budget is prepared using...Ch. 7 - Which of the following is not an operating budget?...

Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses

Answer to Problem 1MC

Explanation of Solution

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