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/ Homework Answers / Accounting / Multiple Choice Questions 1.An example of a committed cost is:   A. employee training. B. manufacturing

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Multiple Choice Questions

1.An example of a committed cost is: 
 

A. employee training.

B. manufacturing supplies.

C. real estate taxes.

D. charitable contributions.

2.Which of the following is not a strong reason for budgeting? 
 

A. Budgets provide a benchmark for judging performance.

B. Budgeting requires little effort by non-accounting managers.

C. Budgeting requires management to plan.

D. Budgeting requires coordination among the functional areas of the firm.

3.The budgeting process that most likely creates an attitude supportive of achieving organization goals is: 
 

A. top-down approach.

B. zero based approach.

C. proportionate increase approach.

D. participative approach.

4.A budgeting approach that implies little or no input from lower levels of management is known as the: 
 

A. top-down approach.

B. zero based approach.

C. proportionate increase approach.

D. participative approach.

5.Budget slack is: 
 

A. sometimes called padding or cushion.

B. the result of budget estimates submitted that are slightly higher than what the costs are really expected to be.

C. an allowance for contingencies built into a budget.

D. all of these.

6.Zero-based budgeting forces managers to: 
 

A. identify and prioritize the activities that are carried out in their departments.

B. justify all of their expenditures for each budget period.

C. both identify and prioritize the activities that are carried out in their departments and justify all of their expenditures for each budget period.

D. none of these.

7.A budget that is prepared for several periods in the future, then revised several times prior to the budget period is called a: 
 

A. rolling budget.

B. zero-based budget.

C. discretionary budget.

D. single-period budget.

8.A budget that has been prepared only once prior to the budget period is called a: 
 

A. continuous budget.

B. zero-basedbudget.

C. discretionary budget.

D. single-period budget.

9.A budgeting process that involves justifying resource requirements based on an analysis and prioritization of organizational objectives is called: 
 

A. continuous budgeting.

B. zero-based budgeting.

C. discretionary budgeting.

D. single-period budgeting.

10.___________ budgets are generally more expensive to maintain than single-period budgets because more time and effort is required in their preparation: 
 

A. Zero-based

B. Continuous

C. Discretionary

D. Production

14-1

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