The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines

The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6MC: Which of the following is true in a bottom-up budgeting approach? Every expense needs to be...

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Which of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.
The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines for senior managers. In preparing your report you should consider the behavioural consequences of using budgets in planning and control.
the chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. as teh management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines for senior managers. In preparing your report you should consider the behavioural consequences of using budgets in planning and control
Management accountants must try to implement systems that are acceptable to budget stakeholders to produce positive effects. Now, as a management accountant, choose three (3) negative attitudes, explain them and write yourr ecommendations on how you will address these negative attitudes from a management’s perspective. It couldi ether be a policy that the management will implement or an action that will be undertaken by management to counteract the negative attitude.
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 above
When the budgeting process is communicated according to corporate policy, the employees involved are demonstrating a high level of: Select one: O a. Integrity O O O b. Confidentiality c. Credibility d. Competence
A company can expect to receive which of the following benefits when it starts its budgeting process? The budget provides managers with a benchmark against which to compare actual results for performance evaluation. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. The budget helps motivate employees to achieve sales growth and cost-reduction goals. All of the above
Which of the following best describes the role of top management in the budgeting process? Should be involved only in the approval Should not necessarily have detailed knowledge of the daily operations and should limit their involvement Should be enthusiastic and committed to the budget process Separates the budgeting process and the business planning process please answer immediately :)
It is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: 1. Explain clearly the differences between forecasting and budgeting. Define the following terms: i. Single-loop feedback. ii. Double-loop Feedback.
It is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: Define the following terms: iii. Feed -back loop. Explain this as it applies in the Control Circle. iv. Identify and explain in detail features of feed- back which add value to the management of an institution.
Which of the following budgeting processes is LEAST likely to motivate managers toward organizational goals?a. setting budget targets at attainable levelsb. participation by subordinates in the budgetary processc. use of management by exceptiond. holding subordinates accountable for the items they controle. having top management set budget levels
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…