(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue? a. Participative budgeting b. Budgetary slack c. Strategic planning d. Benchmarking

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Answer 1

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Can you solve this financial accounting problem using appropriate financial principles?

Answer 2

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 3

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 4

Textbook Question

Chapter 9, Problem 1QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue?

a. Participative budgeting
b. Budgetary slack
c. Strategic planning
d. Benchmarking

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 8

Expert Solution & Answer

To determine

The correct option out of the given choices.

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

The correct option out of the given choices.

Answer 12

Answer to Problem 1QC

Option b. Budgetary slack is the appropriate term to describe the situation in which the manager intentionally over budgets expense or under budgets revenue.

Answer 13

Explanation of Solution

a.

Participative budgeting: This is not the correct option because participative budget involves many levels of management in the budgeting process. So, it is not related to the budgetary slack.

b.

Budgetary slack: This option is correct as preparing budget is a tedious job. The manager intentionally creates a slack into the budget as to avoid uncertainty in future and to look actual performance better when benchmarking is incorporated with budgetary slack. Also, to retain the resources, when a compulsory budget cut event arises.

c.

Strategic planning: This option is not right as strategic planning is long-term planning for the organization and not associated with budgetary planning.

d.

Benchmarking: Benchmark is a target that management supposed to achieve in company performance. To achieve the performance, management has to involve in preparing a budget like the operational and financial budget. Thus, this is an incorrect option.

Answer 14

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

(Learning Objective 1) Which term describes the situation in which a manager intentionally overbudgets expenses or underbudgets revenue? a. Participative budgeting b. Budgetary slack c. Strategic planning d. Benchmarking

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Answer to Problem 1QC

Explanation of Solution

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