introduction chapters
chapter 21
Budgeting:
Planning for Success
goals discussion
goals
achievement fill
in the blanks
multiple
choice
problems
check list and key terms
1. A is a formal quantitative expression of management expectations.
2. With the approach upper-level executives can study the interactions of lower units and determine the consistency of each unit's plans and expectations.
3. The method is time consuming and expensive to administer because of increased employee involvement.
4. Intentionally overstating various anticipated costs is called budgetary .
5. In contrast to incremental budgeting, requires that each expenditure be rejustified for each budget period.
6. A budget is a comprehensive set of integrated budgets that serve as the financial plan for the entire organization.
7. The budget is probably the most important element of a master budget.
8. The budget incorporates all production costs other than direct material and direct labor.
9. In a cash budget, the section discloses the total cash available during the period before considering any disbursement.
10. In a cash budget the section provides a schedule of borrowings and repayments and also discloses the related interest payment on borrowed funds.
11. A budget covers a one-year period, however, a new month is added as the current month is completed.
12. The preparation of budgeted financial statements is often called the preparation of statements.
13. A budgetary restriction occurring in advance of the related expenditure is often known as an .