Chap015 - Chapter 15 - Budgeting and Financial Planning...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 15 - Budgeting and Financial Planning Chapter 15 Budgeting and Financial Planning True / False Questions 1. A slightly inaccurate sales forecast will not affect the other schedules comprising the master budget. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Medium Learning Objective: 3 2. The master budget is a comprehensive profit plan tying together all phases of an organization's operations. TRUE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Easy Learning Objective: 3 3. The idea behind participative budgeting is to involve employees throughout an organization in the budgetary process with the belief that they will be more willing to accept it. TRUE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Medium Learning Objective: 5 15-1 Chapter 15 - Budgeting and Financial Planning 4. Strategic long-range plans are usually stated in rather specific terms. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Easy Learning Objective: 1 5. Econometric models can include many relevant predictors that can be manipulated in order to examine different hypothetical conditions and relate them to the sales forecast. TRUE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Hard Learning Objective: 3 6. Base-budgeting is similar to zero-based budgeting in that it sets the initial budget for virtually everything to zero. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Medium Learning Objective: 5 7. Padding the budget or manipulating reported results in order to maximize one's personal gain or that of others is considered unethical behavior. TRUE AACSB: Analytic, Ethics AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Easy Learning Objective: 5 15-2 Chapter 15 - Budgeting and Financial Planning 8. [Appendix] In addition to helping management decide how much to order at a time, the EOQ model can help in deciding when to order and how much inventory should be held as a safety stock. TRUE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Medium Learning Objective: 7 9. The master budget is a detailed plan for the coming year, expressed in quantitative terms. TRUE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Easy Learning Objective: 2 10. The master budget is based on many assumptions and estimates of known parameters. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Decision Making Difficulty: Easy Learning Objective: 3 11. A financial planning model is a set of mathematical relationships expressing interactions between the various operational, financial, and environmental events that determine the overall results of an organization's activities....
View Full Document

This note was uploaded on 05/29/2011 for the course ACCOUNTING 102 taught by Professor Mohamed during the Spring '11 term at Faculty of English Commerce Ain Shams University.

Page1 / 46

Chap015 - Chapter 15 - Budgeting and Financial Planning...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online