Reference no: EM133012734

Problem 1: In incremental budgeting:

A) Managers must justify each item within the operating budget as if it were a new budget item

B) The budget is never updated

C) The prior year's budgeted amounts or actual results are used to build the new operating budget

D) The budget is prepared by the top managers

Problem 2: Which of the following statements is not true?

A) Budgeting sets targets for future performance.

B) Budgeting helps to coordinate organization activities.

C) Budgeting is done before strategy is set.

D) Budgeting is prepared in advance of the budget period.