ACC 102 test notes (3) - CHAPTER 23 SUMMARY: 1. Describe...

ACC 102 test notes (3)
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CHAPTER 23 SUMMARY: 1. a. Planning is the forward-looking phase of the managerial process. It involves setting both long- & short-term objectives & identifying the tactics used to achieve them. b. Organizing involves arranging for the necessary resources needed to achieve the plan, including the preparation of a budget. c. Directing/leading is the action phase of the managerial process. It involves implementing the objectives developed in the planning phase including motivating employees to achieve the objectives. d. Control is the backward-looking phase of the managerial process. It involves comparing actual results to budgeted figures & taking corrective action if necessary. 2. List the key benefits of budgeting. Budgeting has several benefits: a. Forces mgrs to plan ahead. b. Serves as a basis for communication throughout the Org. . c. Motivates employees to work toward the Org.’s goals. 3. a. b. Budgets that are “tight but attainable” are more likely to motivate people to work harder than budgets that are either too easy or impossible to achieve. c. Participative budgeting allows individuals to provide input into the budget-setting process. However, it may lead to the creation of budget slack. d. Using different budgets for planning than for performance Evals, rolling budgets, or zero-based budgets can mitigate some of the game playing that occurs in the budgeting process. 4.
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