1. A budget is a financial plan for the future used for planning, controlling, and decision making 2. Budgeting means to set standards, receive feedback, and executing corrective action. 3. The budget director is responsible for directing and coordinating the budgeting process 4. The master budget is composed of the operations budget and the future budget. 5. Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances. 6. Price standards specify amounts and quantity standards specify prices 7. The total budget variances are categorized into price variances and usage variances 8. Standard costs are the amount that should be spent to produce a product or service 9. Responsibility accounting is a system that measures the results of each responsibility center and compares those results with some expected or budgeted outcome. 10. A responsibility center is a part of a business whose workers are accountable for specified activities. 11. In an investment responsibility center, the manager is only responsible for costs. 12. In centralized organizations, lower-level managers are responsible only for implementing! decisions 13. Strategic cost management is the identification of strategies to develop a competitive advantage 14. Strategic decision making is important to achieve good inventory control 15. The objective of strategic cost management is to reduce costs while strengthening strategic positions. 1. A budget is a financial plan for the future used for planning, controlling, and decision making 2. Budgeting means to set standards, receive feedback, and executing corrective action. 3. The budget director is responsible for directing and coordinating the budgeting process 4. The master budget is composed of the operations budget and the future budget. 5. Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances. 6. Price standards specify amounts and quantity standards specify prices 7. The total budget variances are categorized into price variances and usage variances 8. Standard costs are the amount that should be spent to produce a product or service 9. Responsibility accounting is a system that measures the results of each responsibility center and compares those results with some expected or budgeted outcome. 10. A responsibility center is a part of a business whose workers are accountable for specified activities. 11. In an investment responsibility center, the manager is only responsible for costs. 12. In centralized organizations, lower-level managers are responsible only for implementing! decisions 13. Strategic cost management is the identification of strategies to develop a competitive advantage 14. Strategic decision making is important to achieve good inventory control 15. The objective of strategic cost management is to reduce costs while strengthening strategic positions