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Question 3: Maximizing the value of the organization should be the objective for

A. For-profits

B. Non-profits

C. Public agencies

D. All organizations

Question 4: The primary purpose of a budget is to provide an operating plan to facilitate management.

True

False

Question 5: Budgeting is challenging due to

A. Lack of financial training

B. The amounts of money involved

C. The different skills needed to produce any good or service

D. All of the above

Question 7: Which of the following variables does a manager of an expense center have control over?

A. Mix of inputs

B. Product mix

C. Output prices

D. Capital investments

Question 8: Approving the budget is the responsibility of

A. Operating managers, finance, and senior management

B. Finance and senior management

C. Senior management and the board of directors

D. The board of directors and regulators

Question 9: Due to the time required to construct, manage, and evaluate budgets, how many different budget years may a manager be required to work on at one time?

A. One budget year

B. Two budget years

C. Three budget years

D. Four or more budget years

Question 10: According to the author, which is the most sensible strategy to reduce budgets?

A. Across-the-board reductions

B. Cut new programs

C. Cut expansions of existing programs

D. Cut low value departments

E. Cut funding to poorly performing managers