Question

1. The budget committee consists of

   	a.	senior managers, including the CEO and CFO.
   	b.	representatives from the stockholders and suppliers.
   	c.	a company's stockholders.
   	d.	all employees interested in providing input to the budgeting process.

2. 1 points

   Question 2

3. Which of the following is not typically a part of the master budget?

   	a.	Direct material purchases budget
   	b.	Performance report budget
   	c.	Projected cash receipts and disbursements
   	d.	Budgeted balance sheet

4. 1 points

   Question 3

5. Managers may be tempted to pad the budget to meet performance targets.

   True

   False

6. 1 points

   Question 4

7. Budgets are useful in the control process because they provide a basis for evaluating performance.

   True

   False

8. 1 points

   Question 5

9. The amount and timing of cash flows is the focus of the cash receipts and disbursements budget.

   True

   False

10. 1 points

    Question 6

11. Less detailed budgets are associated with

    	a.	production costs.
    	b.	governmental agencies.
    	c.	longer time periods.
    	d.	zero-based budgeting.

12. 1 points

    Question 7

13. Who is responsible for the approval of the master budget?

    	a.	The budget committee
    	b.	The company's cost accountant
    	c.	The company's auditors
    	d.	The company's board of directors

14. 1 points

    Question 8

15. Which statement is not true concerning the development of a budget?

    	a.	It is a means of planning for management.
    	b.	It often involves communication with and input from department managers.
    	c.	It enhances communication and coordination among managers.
    	d.	It is created by the budget committee.

16. 1 points

    Question 9

17. A budget is useful in the planning process because it

    	a.	determines who is to blame for poor operations.
    	b.	forces managers to think about goals and objectives and means of achieving them.
    	c.	identifies budget padding.
    	d.	creates budget slack.

18. Which of the following statements regarding approaches to budgeting is (are) true?

    I. Most managers believe that successful budgeting requires a bottom-upapproach.
    II. A top-down approach involves substantial input from lower-levelmanagers.

    	a.	Only I
    	b.	Only II
    	c.	Both I and II
    	d.	Neither I nor II

19. 1 points

    Question 10

Answer 1

1 senior managers, including the CEO and CFO 3 TRUE 4 TRUE 5 TRUE governmental agencies 7 The company's board of directors 8 It enhances communication and coordination among managers. (Ctrl-