Prepare budgets-budget figures are often biased

Assignment Help Financial Accounting

Reference no: EM131267690

Because people prepare budgets, budget figures are often biased. Which is true?

A. Sales quantity forecasts tend to be exaggerated to make the sales team look good

B. Production cost estimates tend to be overstated to create wriggle room (budgetary slack)

C. Efficient organizations begin their budget process with last year's budget, and adjust the figures by a certain percentage

D. When senior management sets budget numbers, a more realistic budget can be developed

E. None of the above

Reference no: EM131267690

Questions Cloud

When traditional absorption costing is employed : When traditional absorption costing is employed, which of the following is false? Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performanc..

Calculate the amount of gross profit earned by company : ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: Calculate the amount of gross profit earned by ABC Company duri..

Uses variable costing for internal decision making purposes : CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision making purposes. Last year, both companies reported the same production and sales volumes.

Determine their taxable income : A Corporation has the following information for 2014. Using schedule M-1 of form 1120, determine their taxable income:

Prepare budgets-budget figures are often biased : Because people prepare budgets, budget figures are often biased. Which is true?

In negotiating a price-minimum acceptable selling price : The Cintron Company sells their single product for $60 per unit. Unit product costs are as follows: Direct materials$20 Direct labor20 Manufacturing overhead4 Total$44 A special order to purchase 10,000 units was recently received. There is enough ca..

When activities are performed inside firms : When activities are performed inside firms, which of the following is true?

Capacity to produce widgets : Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,00..

Periodic inventory-calculate amount of net income reported : ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: Calculate the amount of net income reported on ABC Company's in..

User Account

All Pages