Managerial Accounting: Questions With Clear & Easy
Solutions
Strategic planning Right Ans - Focuses on long-term plans
Capital budgeting Right Ans - Focuses on intermediate range plans
Operations budgeting Right Ans - Focuses on short-term plans
Which activities are involved in strategic planning? Right Ans -
Determining which product to develop
Identifying the most profitable market niche
Determining the scope of the business
Capital budgeting focuses on _________range planning. Right Ans -
intermediate
Operations budgeting concentrates on _______term plans. Right Ans - short
A continuous 12-month budget is Right Ans - adjusted at the end of each
month.
Strategic planning Right Ans - Focuses on decisions such as defining the
scope of the business, determining which products to develop or discontinue,
and identifying the most profitable market niche
Capital budgeting Right Ans - Involves decisions such as whether to buy or
lease equipment, whether to stimulate sales, or whether to increase a
company's asset base
Operations budgeting Right Ans - Involves decisions establishing sales
targets, production goals, and financing plans
Which of the following is an advantage of budgeting? (Select all that apply.)
Right Ans - Assists in performance evaluation
enables better coordination across departments
provides advance notice of potential problems
allows for better planning
, Strategic plans are_______ rather than quantitative. Right Ans - descriptive
Managers should be aware that budgets can have which of the following
negative effects on employees? (Select all that apply.) Right Ans - Increase
stress
limit individual freedom
A technique that invites personnel at all levels of the organization to
contribute to the budget process is called Right Ans - participative
budgeting.
A 12-month budget that is continuously adjusted by adding an additional
month at the end of each month is called a(n) Right Ans - perpetual budget.
Which of the following is not an advantage of budgeting? (Select all that
apply.) Right Ans - Lowers accountability
increases employee's individual freedom
ensures profitability
The master budget is a group of detailed budgets and schedules representing
the company's Right Ans - operating and financial plans for the future.
Which of the following are not included in the master budget? (Select all that
apply.) Right Ans - Strategic budgets
Mission statement
Opportunity costs
Performance budgets
True or false: Budgets can increase stress and reduce individual freedom.
Right Ans - true
The budgeting process normally begins with preparing the________ budgets.
(Enter only one word.) Right Ans - operating
Participative budgeting is a process where Right Ans - employees at all
levels are involved in the budget process.
Solutions
Strategic planning Right Ans - Focuses on long-term plans
Capital budgeting Right Ans - Focuses on intermediate range plans
Operations budgeting Right Ans - Focuses on short-term plans
Which activities are involved in strategic planning? Right Ans -
Determining which product to develop
Identifying the most profitable market niche
Determining the scope of the business
Capital budgeting focuses on _________range planning. Right Ans -
intermediate
Operations budgeting concentrates on _______term plans. Right Ans - short
A continuous 12-month budget is Right Ans - adjusted at the end of each
month.
Strategic planning Right Ans - Focuses on decisions such as defining the
scope of the business, determining which products to develop or discontinue,
and identifying the most profitable market niche
Capital budgeting Right Ans - Involves decisions such as whether to buy or
lease equipment, whether to stimulate sales, or whether to increase a
company's asset base
Operations budgeting Right Ans - Involves decisions establishing sales
targets, production goals, and financing plans
Which of the following is an advantage of budgeting? (Select all that apply.)
Right Ans - Assists in performance evaluation
enables better coordination across departments
provides advance notice of potential problems
allows for better planning
, Strategic plans are_______ rather than quantitative. Right Ans - descriptive
Managers should be aware that budgets can have which of the following
negative effects on employees? (Select all that apply.) Right Ans - Increase
stress
limit individual freedom
A technique that invites personnel at all levels of the organization to
contribute to the budget process is called Right Ans - participative
budgeting.
A 12-month budget that is continuously adjusted by adding an additional
month at the end of each month is called a(n) Right Ans - perpetual budget.
Which of the following is not an advantage of budgeting? (Select all that
apply.) Right Ans - Lowers accountability
increases employee's individual freedom
ensures profitability
The master budget is a group of detailed budgets and schedules representing
the company's Right Ans - operating and financial plans for the future.
Which of the following are not included in the master budget? (Select all that
apply.) Right Ans - Strategic budgets
Mission statement
Opportunity costs
Performance budgets
True or false: Budgets can increase stress and reduce individual freedom.
Right Ans - true
The budgeting process normally begins with preparing the________ budgets.
(Enter only one word.) Right Ans - operating
Participative budgeting is a process where Right Ans - employees at all
levels are involved in the budget process.
