The statement that is true in relation to engineered cost centres is:

Select one:

a. Planning is more difficult in engineered cost centres than in discretionary cost centres

b. Service departments where there are repetitive activities are performed are more likely to be engineered cost centres

c. It is difficult to link the service or product to the cost centre

d. The research and development department of an organisation is likely to be an engineered cost centre

The relative performance evaluation approach advocated by the Beyond Budgeting philosophy means employees' performance is evaluated against:

Select one:

a. customized budgetary targets

b. their own past performance

c. peer performance

d. benchmarks established by top management

The key independent variable for strategic budgeting is:

Select one:

a. cash flow

b. expense

c. sales

d. profit

The process of considering the effect of alternative courses of action on profits, assets and cash flow management is known as:

Select one:

a. zero based budgeting

b. activity based budgeting

c. strategic budgeting

d. operational budgeting

The most likely example of a discretionary cost item is:

Select one:

a. research and development costs

b. management salaries

c. taxation

d. council rates

A key question that relates to the asset cycle is:

Select one:

a. What are the returns generated by investment in the business?

b. What is the borrowing capacity of the organisation?

c. What is the cost of holding inventory?

d. Will an increase in cost impact competitive advantage?