NEW
Font size
WorksheetsBudgeting and Forecasting in the New Normal
Total questions: 15
Worksheet time: 8mins
Statement 1: Budgeting is a process of predicting the future using past data.
Statement 2: A Budget is used as a guide to control cost of different departments
a. Statement 1 is True, Statement 2 is False
b. Statement 1 is False, Statement 2 is True
c. Both Statements are True
d. Both Statements are False
This Forecasting Method uses this Formula :
Total Revenue / Sum of Past Sales Periods
Historical Growth Method
Linear Regression
Run Rate Method
Moving Average
This Forecasting Method uses Alpha and Beta Testing to obtain Sales forecast
Consumer Survey Method
Sales Force Composite Method
Delphi Method
Test Marketing Method
Which of the following is not part of Operating Budget?
Sales Budget
Selling and Administrative Budget
Budgeted Income Statement
Budgeted Statement of Financial Position
The following variables are needed to be considered in crafting a Budget except for:
Keep Budget simple and realistic with SMART Goal
Choose Forecasting Method to be used in Sales Budget
Review Current Financial Position
Align Budget to the Strategic Objectives of the Compmany
Budgeting provides insight on what a company could achieve while forecasting shows want a business wants to achieve for the future period.
True
False
Statement 1: Forecasting provides short term representation of actual circumstances which the business needs.
Statement 2: Budget should be updated frequently than once a year so that it can cope with current market activites
Statement 1 is True, Statement 2 is False
Statement 1 is False, Statement 2 is True
Both Statements are True
Both Statements are False
What is SMART Goal?
Simple, Measurable, Attainable, Relevant, Time-based
Specific, Measurable, Attainable, Relevant, Time-based
Simple, Measurable, Attainable, Reliable, Time-based
Specific, Measurable, Attainable, Reliable, Time-based
The following are the variables needed to consider in crafting a Forecast except for:
Develop Basis of Forecast
Estimate future business Operations
Know the reasons for Deviation in Forecast vs Actual Results
Impose sanctions to employees for variances
Master Budget comprises of the following except:
Operating Budget
Financial Budget
Capital Investment Budget
Budget Policy
Budget and Forecast should always be align with Strategic Goals of the Company.
True
False
The most common Budgeting method which uses prior year's actual figure add or subtract a percentage to obtain current year's budget.
Incremental Budgeting
Activity Based Budgeting
Value Proposition Budgeting
Zero-Based Budgeting
This Budgeting Method helps company analyze cost drivers which can help improve business efficiency b reducing cost. This is usually used by Start Ups.y
Zero-Based
Delphi Method
Activity-Based
Sales Force Composite
Statement 1: Quantitative forecasting method uses Mathematical data based on past performance to predict future data.
Statement 2: Jury of Executive Opinion Method includes all executives individual opinions and external consultants
a. Statement 1 is True, Statement 2 is False
b. Statement 1 is False, Statement 2 is True
c. Both Statements are True
d. Both Statements are False
This forecasting method includes analysis of trends, seasonality by providing more weight on recent data.
Exponential Smoothing
Linear Regression
Smoothing Based
Moving Average
