All of the following are necessary for budgets to be effective except:
A. Goals should be challenging and attainable.
B. Employees affected by a budget should be consulted when it is prepared.
C. Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
D. Managers must be aware of potential negative outcomes of budgeting, such as budgetary slack.
E. All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period
Answer: E. All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period
Learn More :
Managerial Accounting
- The difference between actual price per unit of input and the standard price per unit of input results in a:
- The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are:
- When there is a difference between the actual volume of production and the standard volume of production, which of the following, based solely on fixed overhead, occurs:
- Standard costs are used in the calculation of:
- Operating budgets include all the following budgets except the:
- The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, adding a new budget each period so that the budgets always cover the same number of future periods, is called:
- Which of the following must be prepared before the direct labor budget?
- When evaluating a special order, management should:
- Which of the following would be a line item for a variable costing income statement?
- Which of the following is not included in the product cost under variable costing?
- The sales level at which a company neither earns a profit nor incurs a loss is the:
- In cost-volume-profit analysis, the unit contribution margin is:
- A target income refers to:
- Which of the following statements is NOT true?
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.