Budget control

What is one of the main risks of using multiple spreadsheets and people in the budgeting process?

• It slows down revenue collection

• It leads to fewer iterations

• It increases the chance of errors

• It reduces the need for accounting software

Why should revenue assumptions be reviewed in the budget?

• Because they are usually set too low

• Because they dictate payroll expenses

• Because they determine tax obligations

• Because they impact company bottlenecks

What is a 'step costing change point'?

• A large expenditure triggered when volume exceeds a limit

• A minor cost adjustment for seasonal demand

• A small increase in variable expenses

• A cost associated with staff training

One recommended method to reduce budget complexity and errors is to:

• Eliminate historical data

• Merge departments with different functions

• Merge small-dollar line items into one category

• Budget only for one quarter at a time

Why might managers submit inaccurate budgets?

• They intentionally inflate numbers

• They are inexperienced and do budgeting only once a year

• They dislike working with consultants

• They rely on outdated software

What is ‘budget preloading’?

• Running simulations to stress test a budget

• Filling in the majority of stable line items for managers ahead of time

• Entering a budget into the system before approval

• Automating cost calculations for commissions

What is a recommended method for detecting hidden errors in the budget?

• Use only AI-based tools

• Use last year’s numbers as-is

• Manually recalculate the budget, preferably by a third party

• Let department heads double-check their own inputs

Why is it necessary to do a final full-budget review before sign-off?

• Because some parts may be based on outdated data

• To add more departments into the plan

• To update the tax calculations

• Because CFO approval is optional

What is the purpose of putting 'FINAL VERSION' with a timestamp in the footer of the budget?

• It helps calculate version differences

• It ensures formatting consistency

• It assists in converting to other currencies

• It identifies the approved and official version of the budget

What security step should be taken after the budget is loaded into the accounting system?

• Increase all forecasted numbers by 5%

• Send a printed copy to all departments

• Lock down access and use change-tracking logs

• ncrypt the entire budget file for download