321. Myopic behavior occurs when
a. actions improve budgetary performance in the short-run but are harmful in the long run
b. there is uncertainty
c. there is focus on immediate costs
d. actions improve budgetary performance in the distant time horizon
322. An example of a negative incentive is
a. promotion
b. nonfinancial incentive
c. feedback reports
d. termination of employment
323. Which of the following is NOT a potential disadvantage of participative budgeting?
a. pseudoparticipation
b. performance feedback
c. unrealistic standards
d. budgetary slack
324. Participative budgeting has which of the following potential problems?
a. building slack into a budget
b. encourages individual behavior that is in basic conflict with the goals of the organization
c. using budgets as a part of performance evaluations could lead to unethical behavior
d. managers take action that will improve performance in the short run but has long-term consequences
325. The condition that exists when managers deliberately underestimate revenues or overestimate costs to provide flexibility is called:
a. Realistic standards
b. Monetary incentives
c. Budgetary slack
d. Management by exception
326. Realistic budgets reflect
a. actual levels of activity, full capacity usage, efficiencies, and general economic trends
b. actual levels of activity, seasonal variations, efficiencies, and general economic trends
c. ideal levels of activity, full capacity usage, efficiencies, and general economic trends
d. ideal levels of activity, full capacity usage, and efficiencies
327. Controllable costs are those that a manager
a. has no authority over
b. cannot avoid
c. does not participate in authorizing
d. can influence through decision making
328.
- Define budgeting and control. How are budgets used in planning?
- How are budgets used to control? What are some of the reasons for budgeting?
- Budgets are the quantitative expressions of plans. Budgets are used to translate the goals and strategies of an organization into operational terms.
- Control is the process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance. Budgets are the standards, and they are compared with actual costs and revenues to provide feedback.
- Budgeting forces managers to plan, provides resource information for decision making, sets
benchmarks for control and evaluation, and improves the functions of communication and coordination.
a. actions improve budgetary performance in the short-run but are harmful in the long run
b. there is uncertainty
c. there is focus on immediate costs
d. actions improve budgetary performance in the distant time horizon
322. An example of a negative incentive is
a. promotion
b. nonfinancial incentive
c. feedback reports
d. termination of employment
323. Which of the following is NOT a potential disadvantage of participative budgeting?
a. pseudoparticipation
b. performance feedback
c. unrealistic standards
d. budgetary slack
324. Participative budgeting has which of the following potential problems?
a. building slack into a budget
b. encourages individual behavior that is in basic conflict with the goals of the organization
c. using budgets as a part of performance evaluations could lead to unethical behavior
d. managers take action that will improve performance in the short run but has long-term consequences
325. The condition that exists when managers deliberately underestimate revenues or overestimate costs to provide flexibility is called:
a. Realistic standards
b. Monetary incentives
c. Budgetary slack
d. Management by exception
326. Realistic budgets reflect
a. actual levels of activity, full capacity usage, efficiencies, and general economic trends
b. actual levels of activity, seasonal variations, efficiencies, and general economic trends
c. ideal levels of activity, full capacity usage, efficiencies, and general economic trends
d. ideal levels of activity, full capacity usage, and efficiencies
327. Controllable costs are those that a manager
a. has no authority over
b. cannot avoid
c. does not participate in authorizing
d. can influence through decision making
328.
- Define budgeting and control. How are budgets used in planning?
- How are budgets used to control? What are some of the reasons for budgeting?
- Budgets are the quantitative expressions of plans. Budgets are used to translate the goals and strategies of an organization into operational terms.
- Control is the process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance. Budgets are the standards, and they are compared with actual costs and revenues to provide feedback.
- Budgeting forces managers to plan, provides resource information for decision making, sets
benchmarks for control and evaluation, and improves the functions of communication and coordination.
