y leldting to Each of the following ten statements includes a pair of words with
ID: 2563470 • Letter: Y
Question
y leldting to Each of the following ten statements includes a pair of words within parenthesis. Indicate should be chosen to make the statement true. The first statement is done as an exa which of the pl A (loan application/ budget) is a detailed financial plan that quantifies future actions relative to acquiring and using resources. 1. ex pectatio ons and Sca trie 2. Budgets (should/ should not) be used to provide managers with "preapproval" for 3. The (master budget/sales budget) is a comprehensive document specifying sales targets, produr 4. "Responsibility accounting" is a concept under which managers are held accountable for transa 5. Some entities will follow a top-down (mandated/participative) approach to budgeting. 6. A deliberate effort to create "breathing room" within a budget is known as ("padding the budget 7. With (incremental budgeting /zero-based budgeting), each expenditure item must be justieo execution d spending plans. So th tion activities, and financing actions tions and events (beyond/under) their direct influence and control. /"aerating") for the new budget period The starting point for the master budget is an assessment of anticipated (sales/pro oduction ) 9. This comes before the other: (production budget/materials purchases budget ). A (static budget/ flexible budget) is not designed to change with changes in activity level 10.Explanation / Answer
1) Budget
2) Should
Explanation : - Budgets give managers “preapproval” for execution of spending plans.
3) Master budget
Explanation : - Master budget is a comprehensive set of documents specifying sales targets, production activities, and financing actions.
4) Under
Explanation : - In responsibility accounting concept, units and their managers are held accountable for transactions and events under their direct influence and control.
5) Mandated
Explanation : - Some entities will follow a top-down mandated approach to budgeting. These budgets will begin with upper level management establishing parameters under which the budget is to be prepared. These parameters can be general or specific.