With one exception, the following objectives are accomplished by budgeting. Which of these statements is NOT true about budgeting objectives? Shows management's operating plans for the coming period. O Locks in company spending for the period. Forces all levels of management to think ahead, anticipate results, and take action to r poor results. Formalizes management's plans in quantitative terms.
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- If management is being evaluated on their ability to manage a budget, what can they do to increase cash flow?Why is a clear understanding of managements goals and objectives necessary for effective budgets?Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
- Which approach requires management to justify all its expenditures? A. bottom-up approach B. zero-based budgeting C. master budgeting D. capital allocation budgetingWhich of the following is not considered a benefit of the budgeting process? a. Gives managers guidance when evaluating the performance of business operations. b. Determines the exact amount of revenues and expenses for the upcoming fiscal period. c. Helps managers achieve short-term and medium-term goals. d. Helps managers set long-term strategic plans.1. Which of the following is an advantage of the budgeting process? a. It forces management to focus on the past and not be distracted by the day-to-day operations of the business. b. It can communicate to employees specific information about their past performance to determine their promotion prospects. c. It can communicate to employees specific information about their past performance to determine their promotion prospects. d. It can communicate to employees information about their performance expectations in the period ahead. 2. Which one of the following statements regarding changing inventory costing methods is true? a. A change in inventory methods can be justified if the change is made to better match profits with revenue b. Changing inventory costing methods violates comparability c. One place that the reader of an annual report would be able to identify that a company changed inventory costing methods is the statement of shareholders' equity d. Changing inventory costing…
- 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 growth and cost-reduction goals. d. All of the aboveWhich of the following is NOT an objective of the budgeting process? Group of answer choices a - To communicate management's plans throughout the entire organization b - To ensure that the company continues to grow. c - To uncover potential bottlenecks before they occur d - To provide a means of allocating resources to those parts of the organization where they can be used most effectively.CE Company reported the following information for 2022: Budgeted sales $1225000 . All sales are on credit. • Accounts receivable are collected 50% in the month of sale and 50% in the following month. What are budgeted cash receipts for November? $1310000 October November December $560000 $1120000 $1330000 $1120000 $1500000
- 1. Which of the following is NOT an objective of the budgeting process? a. O a. To communicate management's plans throughout the entire organization O D.To provide a means of allocating resources to those parts of the organization where they can be used most effectively С. To ensure that the company continues to grow OTo uncover potential bottlenecks before they occurWhich of the following is true of a budget? O A. Budgets help managers to revise their plans and strategies. B. Budgets do not account for nonfinancial aspects of the upcoming period. C. Budgets are used to express only the operational plans and not the strategic plans of a company. D. Budgets are most useful when they are planned independent of the company's strategic plans.All of the following are true statements about the role of budgets and budgeting EXCEPT that A) a budget is a quantitative summary of the expected allocations and financial consequences of the organization's short-term operating activities. OB) budgeting solves most business challenges because it coordinates activities and communicates an organization's short-term goals to its members. C) the difference between actual results and the budget plan are called variances. D) budgeting includes the process of estimating money inflows and outflows to determine a financial plan that will meet on organization's objectives.