C.

D.

samples selected at random.

only significant unfavorable deviations.

8.
A formal written statement of management s plans for the future, packaged
in financial terms, is a:
A.
Responsibility report. C.
Cost of production report.
B.
Performance report.
D.
Budget.
2.
A.
B.

Budgets are related to which of the following management functions?

Planning
C.
Control
Performance evaluation D.
all of these

22.
Budgeting supports the planning process by encouraging all of the follow
ing activities except:
A.
Requiring all organizational units to establish their goals for the comi
ng period.
B.
Increasing the motivation of managers and employees by providing agreedupon expectations.
C.
Improving overall decision making by considering all viewpoints, options
, and cost control programs.
D.
Directing and coordinating operations during the period.
3.
A.
B.
C.
D.

Which of the following advantages does a budget mostly provide?

Coordination is increased.
Planning is emphasized.
Communication is continuous.
Comparison of actual versus budgeted data.

24.
Which of the following is NOT an advantage of budgeting?
A.
It forces managers to plan.
B.
It provides resource information that can be used to improve decision ma
king.
C.
It aids in the use of resources and employees by setting a benchmark tha
t can be used for the subsequent evaluation of performance.
D.
It provides organizational independence.
4.
Which of the following is least likely a reason why a company prepares i
ts budget?
A.
To provide a basis for comparison of actual performance
B.
To communicate the company s plans throughout the entire business organiza
tion
C.
To control income and expenditure in a particular period.
D.
To make sure the company expands its operations.
5.
Which of the following does not contribute to an effective budgeting?
A.
Top management is involved in budgeting.
B.
To give each manager a free hand in the preparation of the budget, the d
ata within the master budget are flexible.
C.
The organization is divided into responsibility units.
D.
There is communication of results.
6.
The budgets that are based on a very high levels of performance, like ex
pected costs using ideal standards,
C.
D.

samples selected at random.

only significant unfavorable deviations.

8.
A formal written statement of management s plans for the future, packaged
in financial terms, is a:

A.
B.

Responsibility report. C.
Performance report.
D.

Cost of production report.

Budget.

2.
A.
B.

Budgets are related to which of the following management functions?

Planning
C.
Control
Performance evaluation D.
all of these

22.
Budgeting supports the planning process by encouraging all of the follow
ing activities except:
A.
Requiring all organizational units to establish their goals for the comi
ng period.
B.
Increasing the motivation of managers and employees by providing agreedupon expectations.
C.
Improving overall decision making by considering all viewpoints, options
, and cost control programs.
D.
Directing and coordinating operations during the period.
3.
A.
B.
C.
D.

Which of the following advantages does a budget mostly provide?

Coordination is increased.
Planning is emphasized.
Communication is continuous.
Comparison of actual versus budgeted data.

24.
Which of the following is NOT an advantage of budgeting?
A.
It forces managers to plan.
B.
It provides resource information that can be used to improve decision ma
king.
C.
It aids in the use of resources and employees by setting a benchmark tha
t can be used for the subsequent evaluation of performance.
D.
It provides organizational independence.
4.
Which of the following is least likely a reason why a company prepares i
ts budget?
A.
To provide a basis for comparison of actual performance
B.
To communicate the company s plans throughout the entire business organiza
tion
C.
To control income and expenditure in a particular period.
D.
To make sure the company expands its operations.
5.
Which of the following does not contribute to an effective budgeting?
A.
Top management is involved in budgeting.
B.
To give each manager a free hand in the preparation of the budget, the d
ata within the master budget are flexible.
C.
The organization is divided into responsibility units.
D.
There is communication of results.
6.
The budgets that are based on a very high levels of performance, like ex
pected costs using ideal standards,