Management Control S4

What does short-run planning include?

• Strategic planning and operations budgeting

• Production prioritizing and operations budgeting

• Capital budgeting and operations budgeting

• Capital budgeting and production prioritizing

Which of the following is true about budgets?

• Budgets are financial plans for the future.

• Budgets identify objectives and the actions needed to achieve them.

• Budgets should be tightly linked to the strategic plan

• All of them

What is the typical budgeting process?

• Pre-budgets of unit managers, then budgetary framework, then negotiations, then final validation by top management

• Budgetary framework, then negotiations, then pre-budgets of unit managers, then final validation by top management

• Budgetary framework, then pre-budgets of unit managers, then negotiations, then final validation by top management

• Negotiations, then budgetary framework, then pre-budgets of unit managers, then final validation by top management.

What is the master budget?

• It is the end result of the budgeting process

• It is the budget prepared by a unit manager

• It is the document gathering the guidelines for the preparation of the budget.

• It is the synthesis at the company level of the specific unit-level budgets

• 12,800

• 18,800

• 84,800

• 225,600

Which of the following is true about organizational structure?

•  Organizational structure refers to the combination of financial and non-financial reports.

• Organizational structure refers to financial accounting principles based on historic and current information

• Organizational structure is an arrangement of lines of responsibility within the entity

• Organizational structure measures the difference between current assets and current liabilities

This is LVMH’s consolidated half-year results. What is LVMH’s organizational structure?

• Product

• Geography

• customer

• function

What is a standard cost?

• The budgeted cost of production

• The expected cost for one unit of activity

• The measured cost for one unit of activity

• The average cost of producing one unit

What is a KPI?

• It is a measurable value

• It is a goal the organization wants to achieve

• It shows the degree to which an objective is achieved

• It is a representation of present and future performance

Which of the following features is NOT part of the SMART method ?

• Assignable

• Time-related

• Specific

• Manageable