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Carolyn was recently hired at Thermo Chocolate Company in the role as internal auditor. To acquaint herself with company's budgeting process, she reviews the last
Carolyn was recently hired at Thermo Chocolate Company in the role as internal auditor. To acquaint herself with company's budgeting process, she reviews the last three years Actual versus Budget reports. She notices that one of the managers seems to always spend what he budgeted even when there are significant changes to revenues. Other managers seem to have more significant differences as she expected given the changes in revenue. The auditor begins to think the manager is O using budgetary slack to make his budgets. O using cost plus to make his budget. O using a use-it-or-lose-it budgetary method to ensure his budget is not cut in the next year. O using a flexible budget that makes it easier to make his budget. Carolyn was recently hired at Thermo Chocolate Company in the role as internal auditor. To acquaint herself with company's budgeting process, she reviews the fast three years Actual versus Budget reports. She notices that one of the managers seems to always spend what he budgeted even when there are significant changes to revenues. Other managers seem to havernore significant differences as she expected given the changes in revenue. The auditor begins to think the manager is: using budgetary slack to make his budgets. using cost plus to make his budget. using a use-it-or-lose-it budgetary method to ensure his budget is not cut in the noxt year. using a flexible budget that makes it easier to make his budget
Carolyn was recently hired at Thermo Chocolate Company in the role as internal auditor. To acquaint herself with company's budgeting process, she reviews the last three years Actual versus Budget reports. She notices that one of the managers seems to always spend what he budgeted even when there are significant changes to revenues. Other managers seem to have more significant differences as she expected given the changes in revenue. The auditor begins to think the manager is O using budgetary slack to make his budgets. O using cost plus to make his budget. O using a use-it-or-lose-it budgetary method to ensure his budget is not cut in the next year. O using a flexible budget that makes it easier to make his budget.
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