CHAPTER 18 DISCUSSION QUESTIONS
1. The first general purpose of budgeting is to allow individuals or companies to develop a plan to achieve a specific goal. The second purpose is to allow ongoing comparison between the plan and actual results in orde
1. A large company employing numerous people in different geographic areas with various product lines could not remain completely centralized; top management would be too far removed from daily operations to make effec
1. Understanding cost behavior patterns assists management in making important operating decisions. For example, knowing that certain costs are fixed within a range of activity level may help management decide to accep
1. Financial information that is used to prepare annual financial statements is historical in nature and is compiled under a total-cost philosophy. Information for decision making is sometimes estimated, current, and f
1. Capital budgeting is the systematic planning for long-term capital investments. Some examples of decisions that might involve capital budgeting are: a. The decision of whether to purchase new or used assets. b. The
Select the desired account title from the Excel Name Box.
Make your entries in the appropriate cells. No entry is required in the ITEM column.
Remember, this spreadsheet will not be part of your CengageNow grade.