Budgeting reading quiz

1. Insufficient information is never a problem with budgetingT F

2. Static budgets (budgets that do not change) are better than flexible budgets.TF

3. One disadvantage of budgeting is that it can reward short-term goals at the expense of long-term success.T F

4. Managers need to update their plans whenever something happens to change their business unit's prospects in a material way.T F

5. Using budgets to evaluate manager's performance is always a good thing to do.T F

6. A budget can help you gauge profitability, manage costs, and easily spot red flags.T F

7.A company should NOT create several budgets, for best- and worst-case scenarios. T F

8. Managers are often have incentives to set low targets in budgets to ensure success.T F