(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

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

Choose a manufacturing company then discuss the following: First, name your company and list its main products and direct materials used. What is spoilage? Give an example of spoilage that might occur during the manufacturing of the company's product. What is scrap? Give an example of scrap that might occur during the manufacturing of the company's product. What does rework mean? Give an example of rework that might occur during the manufacturing of the company's product. A leading manufacturer recently said, "What has been regarded as normal spoilage in the past will not acceptable as normal spoilage in the future? What are they talking about? What do you think are the external or internal factors that may affect the level of normal spoilage in the future?

The accounting equation helps keep financial records balanced. It shows that a company's assets are always equal to its liabilities plus stockholders' equity (Assets = Liabilities + Equity). This equation helps track how money moves in and out of a business. When a company buys or sells something, the equation makes sure everything is recorded correctly. Respond to the above paragraph

What is the role of the accounting equation in the analysis of business transactions?

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

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

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions