Question

8. Within the cash budget, if budgeted receipts are less than budgeted disbursements, the compan should...

8. Within the cash budget, if budgeted receipts are less than budgeted disbursements, the compan should then plan to:
A. Borrow to cover to shortfall
B. Increase the selling price of goods
C. Reduce projectd ex[enditures
D. All of the above

9. Ideal Standards are
A.motivating to employees
B. the best way to achive goals
C. discouraging to employees
D. Always use in the budgeting process

10. The variable costing income statement is
A. used to report to shareholders
B. used for internal planning purposes only
C. used to obtain financing from a bank
D. irrelevant to decision making

11. A problem with participative budgeting is
A. employees may build in organizational slack
B. employess may not be motivated to achieve desired results
C. the companymay not be much better off
D. all of the above

12. Which of the following would be an examplle of a rolling budged for the month begining April 1, 2017?
A. April 2017 - March 2018
B. January 2017 - Decembe 2018
C. April 2017
D. March 2017

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Homework Answers

Answer #1

8.

If the budgeted receipts are less than the budgeted disbursements, the company should then plan to borrow to cover to shortfall.

Therefore, the correct answer is A.

9.

Ideal Standards are discouraging to employees.

Therefore, the correct answer is C.

10.

The variable costing income statement is used for internal planning purposes only.

Therefore, the correct answer is B.

11.

A problem with participative budgeting is employees may build in organizational slack.

Therefore, the correct answer is A.

12.

Which of the following would be an examplle of a rolling budged for the month begining April 1, 2017?

C. April 2017

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