1 Review Later Budgets must link to objectives, so budgeting is a tactical implementation of the Operations, business plan Strategies, operation plan Strategies, business plan Business plan, operation plan 2 Review Later Identify which of the following is NOT a good way for managers to use a budget. Mangers can set a target for themselves to achieve Managers can consider how conditions might change and what steps they would take Managers can examine relationships between their own operation and those of other departments Managers can use budgets alone to estimate how well they perform over a period of time 3 Review Later Which of the following is the best key performance indicator (KPI) for measuring customer satisfaction? Revenue increase Customer retention rate Increase in sales price without losing customers Employee feedback of customer satisfaction 4 Review Later Which of the following components is not necessary to have in every master budget. Cash budget Operating budget Capital budget Direct material purchases budget Review Later Which of the following describes the correct budgeting process? Establish objectives & targets Planning & communication Develop a detailed budget Review & approval - Implementation and management Establish objectives & targets Develop a detailed budget Planning & communication- Review & approval - Implementation and management Review & approval Develop a detailed budget- Planning & communication Establish objectives & targets Implementation and management Develop a detailed budget - Review & approval - Planning & communication Establish objectives & targets Implementation and management LC