ACCT2301-002-Chap7-Additional-sp2009

ACCT2301-002-Chap7-Additional-sp2009 - 1 ACCT 2301 Spring...

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1 ACCT 2301 Spring Semester 2009 February 24, 2009 Practice Problems – Profit Planning 1. In developing a comprehensive operating budget for a manufacturing company, which one of the following tasks should be performed first? A. Development of the direct labor budget. B. Determination of the advertising budget. C. Development of the production budget. D. Development of a sales forecast. 2. Which of the following is NOT an objective of the budgeting process? A. To communicate management's plans throughout the entire organization. B. To provide a means of allocating resources to those parts of the organization where they can be used most effectively. C. To ensure that the executives of the firm are adequately compensated. D. To coordinate all of the activities of the company in order to achieve the firm’s objectives. 3. Budgeting provides all of the following EXCEPT A. a means to communicate the organization's short-term goals to its members. B. support for the management functions of planning and coordination. C. a means to anticipate problems. D. an ethical framework for decision making. 4. If initial budgets prove unacceptable, planners achieve the MOST benefit from A. planning again in light of feedback and current conditions. B.
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ACCT2301-002-Chap7-Additional-sp2009 - 1 ACCT 2301 Spring...

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