Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago