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The process of creating a formal plan and translating goals into a quantitative format is a. Process costing. c. Budgeting. b. Activity-based costing d. Variance
- The process of creating a formal plan and translating goals into a quantitative format is
a. Process costing. c. Budgeting.
b. Activity-based costing d. Variance analysis (cma)
- Which of the following objectives is not a primary purpose of preparing a budget?
- To communicate the companys plans throughout the entire business organizations.
- To provide a basis for comparison of actual performance.
- To control income and expenditures in a given period.
- To make sure the company expands its operations. (rpcpa)
- These statements are proper to the budgeting process except (rpcpa)
- It is a tool to orchestrate the various functions of operations in a business.
- The involvement of various levels of individuals in the company is necessary to gain acceptance and attain its goals.
- It is a part of managements responsibility to plan the use of its resources.
- Actual results need not be compared with plan, since the process ends after the budget is approved.
- Which of these statements are advantages of profit planning? (rpcpa)
- Develops profit-mindedness, encourages cost consciousness and resource utilization throughout the company.
- Provides vehicle to communicate objectives, gain support for the plan, of what is expected, thereby developing a sense of commitment to achieve established goals.
- Provides yardstick to evaluate actual performance; encouraging efficiency increasing output and reducing cost.
- Provides a sense of direction for the company and enhances coordination of business activity
- Eliminates or takes over the role of administration by providing detailed information that allows executives to operate toward achievement of the organizations objectives.
- All five statements.
- Statements 1, 3 and 4 only.
- Statements 3, 4 and 5 only.
- Statements 1, 2, 3 and 4 only.
- The major objectives of any budget system are to
- Define responsibility centres, facilitate the fixing of blame for missed budget predictions, and ensure goal congruence between superiors and subordinates.
- Foster the planning of operations, provide a framework for performance evaluation, and promote communication and coordination among organization segments.
- Define responsibility centres, provide a framework for performance evaluation, and promote communication and coordination among organization segments.
- Foster the planning of operation, facilitate the fixing of blame for missed budget prediction, and ensure goal congruence between superiors and subordinates. (cma)
- A budget manual, which enhances the operation of budget system, is most likely to include
- Employee hiring policies.
- Distribution instructions for budget schedules
- A chart of accounts.
- Documentation of the accounting system software
- Company policies regarding the authorization of transactions. (cma)
Answer the following and explain the answer!
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