Managerial Accounting

Front

Few businesses plan to fail, but many of those that don’t succeed have failed to plan

Back

True

Front

The master budget reflects the impact of operating decisions, but not financing decisions.

Back

False

Front

Budgeting includes only the financial aspects of the plan and not any non financial aspects such as the number of physical units manufactured

Back

False

Front

Are budgeted financial statements also referred to as pro forma statements?

Back

True

Front

Budgets can play both planning and control roles for management.

Back

True

Front

Budgeting is used to help companies: plan to better satisfy customers, anticipate potential problems, focus on opportunities.

Back

All of these answers are correct.

Front

Budgeting provides all of the following EXCEPT: a means to communicate the organization's short-term goals to its members, support for the management functions of planning and coordination, a means to anticipate problems, an ethical framework for decision making

Back

an ethical framework for decision making

Front

If initial budgets prove unacceptable, planners achieve the MOST benefit from:

Back

planning again in light of feedback and current conditions

Front

Operating budgets and financial budgets:

Back

combined form the master budget

Front

A good budgeting system forces managers to examine the business as they plan, so they can:

Back

set specific expectations against which actual results can be compared