Câu hỏi về ngân sách và quản lý chi phí

Câu 1: Which of the following is NOT considered to be an objective of budgeting?*

• Authorisation

• Activities coordination

• Expansion

• Resources allocation

Which of the following is a characteristic of rolling budgets?*

• The budget for each period is based on the current year's results, modified for changes in activity levels.

• Increments of expenditure are compared with the expected benefits to be received.

• A new accounting period, such as a month or a quarter, is added as each old one expires.

• Updates to the fixed annual budget are made only when they are foreseeable.

Which of the following are disadvantages of a 'bottom-up' style of budgeting?

• (iv) Changes implemented by senior managers may cause dissatisfaction.

• (iii) Morale and motivation is improved.

• (ii) May cause managers to introduce budget slack.

• (i) Consume more time.

• (i), (ii) and (iv) only

"A firm that uses zero-based budgeting for its overheads has a zero variance between budgeted and actual overhead."

• True

• False

The Economic Quatity (EOQ) can be expressed as follows: 2cdh

• The cost of placing one order

• The customer demand for the item

• The cost of holding one unit of inventory for one period

• The cost of a unit of inventory

A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?

• Lower EOQ, Lower Total annual holding cost

• Higher EOQ, Higher Total annual holding cost

• Lower EOQ, Higher Total annual holding cost

• Higher EOQ, Lower Total annual holding cost

The demand for a product is 13,500 units for a three-month period. Each unit of product has a purchase price of £15 and ordering costs are £20 per order placed. The annual holding cost of one unit of product is 10% of its purchase price. What is the Economic Order Quantity (to the nearest unit)?

• 424

• 600

• 848

• 1,200

Is the following statement true or false? "Just-in-time (JIT) manufacturing systems require a large amount of inventory to be held for production and sales"

• True

• False

Which of the followings is NOT the features of effective performance measures?*

• The measures promote goal congruence.

• The measures incorporate only those factors over which the responsibility centre manager has control.

• The measures encourage the pursuit of longer term objectives as well as short-term, budget constrained objectives.

• The measures might cause demotivation and stress-related conflict between a manager and the manager's subordinates, superiors or fellow managers.

While using Balanced scorecard, which of the following measures could be use under Innovation and learning perspectives*

• Working capital ratios

• The rate of labour turnover

• Sales revenue

• Number of clients