QUESTION 1

• If actual results are different from planned results, the difference must always be investigated by management to achieve effective budgetary control
• True
• False

2 points

QUESTION 2

• A static budget is one that is geared to one level of activity
• True
• False

2 points

QUESTION 3

• A flexible budget is a series of static budgets at different levels of activities
• True
• False

2 points

QUESTION 4

• Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity
• True
• False

2 points

QUESTION 5

• Standard cost is the industry average cost for a particular item
• True
• False

2 points

QUESTION 6

• An advantage of standard costs is that they simplify costing of inventories and reduce clerical costs
• True
• False

2 points

QUESTION 7

• Setting standard costs is relatively simple because it is done entirely by accountants.
• True
• False

2 points

QUESTION 8

• Ideal standards will generally result in favorable variances for the company
• True
• False

2 points

QUESTION 9

• A variance is the difference between actual costs and standard costs
• True
• False

2 points

QUESTION 10

• Operating Budgets typically start with a sales forecast
• True
• False

2 points

QUESTION 11

• Describe in your own words the difference between a bottoms-up and tops-down budgeting process?Which one will likely result in the most employee support and commitment?
• Write 150 word minimum

3 points

QUESTION 12

• In your own words describethe 4 components of the balanced scorecard? How can a balanced scorecardhelp an organizationin the planning and control process?
• Write 150 word minimum

6 points

QUESTION 13

• What is the time value of money important in assessing capital investments? What is NPV and how does it play a central role in capital budgets?
• Write 150 word minimum