AYB321 Lecture Notes - Lecture 4: Uptodate, Adaptive Management, Employee Engagement

Budgeting supports the planning process by encouraging all ofthe following activities except:

A. Requiring all organizational units to establish their goals forthe

upcoming period

B. Increasing the motivation of managers and employees by

providing agreed-upon expectations

C. Coordinating operations between departments during theperiod

D. Improving overall decision making by considering all

viewpoints, options and costreduction possibilities.

24. The comprehensive budget plan linking all the individualbudgets related tosales, cost of goods sold, operating expenses,projects, capital expenditures and cash is known asthe:

A. Cash budget

B. Capitalexpenditures budget

C. Continuousbudget

D. Masterbudget

25. A variant of fiscal-year budgeting whereby a twelve-monthprojection into the future is maintained at all times istermed:

A. Flexible budgeting

B. Continuous budgeting

C. Zero-based budgeting

D. Master budgeting

1.If making 10 customized holiday cards uses $20 in materials, $20 in hourly wages and $10 in desk rental space, what is the average cost per unit (card)?

Question (c) ShortQuestions

1. What are the similarities anddifferences of management accounting and financial accounting?

2. What management functions influencethe role of the finance department in an organization? How do thesefunctions affect the activities of the finance department?

3. While management relies heavily onfinancial data, these cannot be considered as a complete answer tomanagement problems. Why?

4. Does the controller exercisecontrol over other departments in an organization? Explain youranswer.

5. Compare and contrast the role andfunctions of the controller and treasurer.

6. Compare and contrast the role andfunctions of the internal auditor and external auditor.

7. Compare and contrast profitplanning and budgeting.

8. Explain the advantages a companymay derive from budgeting.

9. Explain the limitations ofbudgeting.

10. Explain the possible assumptionsone will consider in budget preparation.

11. Who usually compose a budgetcommittee?

12. Compare and contrast incremental budgeting, zero-basedbudgeting, and activity-based budgeting.

13. What behavioral problems are associated with setting abudget too tightly and too loosely?