Which of the following is not a benefit of a static budget performance report? O A. It is useful in evaluating a manager's control over fixed selling and administrative expenses. O B. It is useful in evaluating a manager's effectiveness when actual sales approximate budgeted amounts. OC. It is useful in evaluating a manager's control over variable costs. O D. It is useful in evaluating a manager's control over fixed costs.

Which of the following is not a benefit of a static budget performance report? O A. It is useful in evaluating a manager's control over fixed selling and administrative expenses. O B. It is useful in evaluating a manager's effectiveness when actual sales approximate budgeted amounts. OC. It is useful in evaluating a manager's control over variable costs. O D. It is useful in evaluating a manager's control over fixed costs.

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...

See similar textbooks

Similar questions

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 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.
Define static budget. Give an example that shows how reliance on a static budget could mislead management.
In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a favorable variance and still not have met revenue expectations?
Why is it important to distinguish between variable costs and fixed costs for budgeting purposes?
Which approach requires management to justify all its expenditures? A. bottom-up approach B. zero-based budgeting C. master budgeting D. capital allocation budgeting
Why would managers use a flexible budget? What information does it provide that a regular budget does not?
What are the advantages and disadvantages of the bottom-up budgeting approach?
Which of the following is not a benefit of budgeting? a. It sets some standards to evaluate performance. b. It uncovers drawbacks of department performance c. It reduces the need to track the actual cost activity d. It formalizes a manager's planning efforts
Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. True or False In a flexible budget, when the activity declines, the total variable cost also declines. True or False The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity. True or False To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. True or False Fixed costs should usually be included in performance reports because fixed costs are generally controllable. True or False
A static budget is most useful for evaluating a manager's performance in controlling variable costs. O a. True O b. False
what is the managers duty to take appropriate action when accounting reports indicate that expenditures are significantly above or below budget allocations. how do effective managers reduce cost?