Questions from Managerial Accounting

Q: An ideal budgetary system is one that a. encourages

An ideal budgetary system is one that a. encourages dysfunctional behavior. b. encourages goal-congruent behavior. c. encourages myopic behavior. d. encourages subversion of an organization’s goals....

Q: Some key budgetary features that tend to promote positive managerial behavior are

Some key budgetary features that tend to promote positive managerial behavior are a. frequent feedback on performance. b. participative budgeting. c. realistic standards. d. well-designed monetary an...

Q: Which of the following is not an advantage of participative budgeting?

Which of the following is not an advantage of participative budgeting? a. It encourages budgetary slack. b. It tends to lead to a higher level of performance. c. It fosters a sense of responsibility....

Q: Which of the following is part of the control process?

Which of the following is part of the control process? a. Monitoring of actual activity b. Comparison of actual with planned activity c. Investigating d. Taking corrective action e. All of these.

Q: Which of the following items is a possible example of myopic behavior

Which of the following items is a possible example of myopic behavior? a. Failure to promote deserving employees b. Reducing expenditures on preventive maintenance c. Cutting back on new product deve...

Q: Which of the following is not an advantage of budgeting?

Which of the following is not an advantage of budgeting? a. It forces managers to plan. b. It provides information for decision making. c. It guarantees an improvement in organizational efficiency. d...

Q: The budget committee a. reviews the budget.

The budget committee a. reviews the budget. b. resolves differences that arise as the budget is prepared. c. approves the final budget. d. is directed (typically) by the controller. e. does all of th...

Q: La Cucina Company sells kitchen supplies and housewares. Lava stone is

La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pestles used in the making of guacamole) and is purchased from external suppliers....

Q: A moving, 12-month budget that is updated monthly is

A moving, 12-month budget that is updated monthly is a. not used by manufacturing firms. b. waste of time and effort. c. a master budget. d. a continuous budget. e. always used by firms that prepare...

Q: Which of the following is not part of the operating budget?

Which of the following is not part of the operating budget? a. The direct labor budget b. The cost of goods sold budget c. The production budget d. The capital budget e. The selling and administrativ...