B-21.01 Problem

B-21.01 Problem - and control titi ill f ll t d d t d ti i...

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B-21.01 S f ( / ) Each of the following statements includes a pair of words within parenthesis. Indicate which of the words should be chosen to make the statement true. The first statement is done as an example. A ( loan application / budget ) is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. Budgets ( should / should not ) be used to provide managers with "preapproval" for execution of spending plans. The ( master budget / sales budget ) is a comprehensive document specifying sales targets, production activities, and financing actions. "Responsibility accounting" is a concept under which managers are held accountable for transactions and events ( beyond / under ) their direct influence
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Unformatted text preview: and control. titi ill f ll t d d t d / ti i ti h t ome entities will ollow a top-down mandated participative approach to budgeting. A deliberate effort to create "breathing room" with a budget is known as ("padding the budget" / "aerating" ). With ( incremental budgeting / zero-based budgeting ), each expenditure item must be justified for the new budget period. The starting point for the master budget is an assessment of anticipated ( sales / production ). This comes before the other: ( production budget / materials purchases budget ). A ( static budget / flexible budget ) is not designed to change with changes in activity level....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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