Question 1

At Boulder Industries budgets are the responsibility of everyone. Each department collaborates in determining its expected needs and sales personnel determine the likely sales volume. Bart Gray one of the production managers believes in building plenty of slack into everything including his estimates of ending inventory of work in process.
Required:
You are the accounting manager. Write a memo to Mr. Gray. Explain why the ending inventory figure should be extremely accurate with as little slack as possible.

Accepted Answer

The answer of At Boulder Industries budgets are the responsibility...

Question 2

Ashley Finn is a new production manager. After a great deal of effort including considerable market research she completes her budget and submits it to her boss Keith Payne. Without even looking at it he asks her what her "fudge factor" was and which items contained the most slack. Ashley very surprised responds that she doesn't use any "fudge factor" and that all her figures are honest. Mr. Payne counters by asking her how she would respond if she had to cut about 20% from her budget as it is. He tells her that most budgets are trimmed in committee and she had better be ready. He returns the budget to her and tells her to come back with something reasonable.
Required:
1. Is it ethical to build slack into a budget? Explain.
2. Was it ethical for Mr. Payne to refuse to accept a budget without slack? Briefly explain.

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Question 3

A major difference between the annual budget and long-range planning is the ____________________ over which the data pertain.

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The answer of A major difference between the annual budget...

Question 4

The ____________________ is the starting point in preparing the master budget.

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The answer of The ____________________ is the starting point in...

Question 5

What is a budget?
(b) How does a budget contribute to good management?

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The answer of What is a budget?
(b) How does a...

Question 6

What is participative budgeting? What are its potential benefits? What are its potential shortcomings?

Accepted Answer

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Question 7

The formula for developing a production budget is ___________________ plus ______________________ minus _______________________.

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Question 8

Three major sections of a cash budget are (1) ___________________ (2) ____________________ and (3) ______________________.

Accepted Answer

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Question 9

Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people identify several negative aspects if budgets are not implemented properly.

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Question 10

Budgeting and long-range planning are both important aids to management in achieving a company's goals and objectives. Briefly distinguish between budgeting and long-range planning and indicate how they help managers perform their functions.

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Question 11

The two major differences between the master budgets of a merchandiser and a manufacturer are that the merchandiser will have a ______________________ budget and will not have __________________ budgets.

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Question 12

A __________________ is responsible for coordinating the preparation of the budget in many companies.

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Question 13

The ________________ is a set of interrelated budgets that constitutes a plan of action for a specified period of time.

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Question 14

Match between columns
                        Premises: A selection of strategies to achieve long-term goals.
An estimate of expected sales for the budget period.
Budgets that indicate the cash resources needed for expected operations and planned capital expenditures.
The projection of potential sales for the industry and the company's expected share of such sales.
Management's plans expressed in financial terms for a specified future time period.
A projection of anticipated cash flows.
A group responsible for coordinating the preparation of the budget.
A projection of production requirements to meet expected sales.
A set of interrelated budgets that constitute a plan of action for a specified time period.
An estimate of the quantity and cost of direct materials to be purchased.

Accepted Answer

The Answer of Budget and Financial budgets and Budget committee is...

Quiz 23: Budgetary Planning

A major difference between the annual budget and long-range planning is the ____________________ over which the data pertain.

The ____________________ is the starting point in preparing the master budget.

What is a budget? (b) How does a budget contribute to good management?

What is participative budgeting? What are its potential benefits? What are its potential shortcomings?

The formula for developing a production budget is _ plus minus _______.

Three major sections of a cash budget are (1) _ (2) and (3) ____.

Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people identify several negative aspects if budgets are not implemented properly.

Budgeting and long-range planning are both important aids to management in achieving a company's goals and objectives. Briefly distinguish between budgeting and long-range planning and indicate how they help managers perform their functions.

The two major differences between the master budgets of a merchandiser and a manufacturer are that the merchandiser will have a ____ budget and will not have budgets.

A __________________ is responsible for coordinating the preparation of the budget in many companies.

The ________________ is a set of interrelated budgets that constitutes a plan of action for a specified period of time.

Match the items below