solution

Which of the following statements best describes the concept of control?

a. The steps taken by management to increase the likelihood of meeting objectives

b. The use of budgets to achieve objectives

c. The retention rate of new hires

d. The ratio of managers to associates in an organization

2. The fifth stage of the values-based approach to incorporating ethics in budgeting involves ______.

a. prioritization of values

b. identifying values

c. analyzing previous processes

d. the introduction of values into activity-based budgeting

3. A/an ______ budget lays out the spending plan for costs related to production of goods and services.

a. departmental

b. master

c. operating

d. finance

4. Stan was asked to create a budget to motivate his sales force to exceed the department’s projected sales goals for the year. What kind of budget should he use?

a. Bracket budget

b. Stretch budget

c. Motivational budget

d. Add-on budget

5. A/an ______ budget focuses on the cost of actions that are undertaken to achieve an outcome.

a. activity-based

b. incremental

c. outcome-focused

d. flexible

6. What best describes the reason that managers use rolling budgets?

a. To fund a one-time project

b. To have a stable, fixed budget throughout the year

c. To stay focused on the big picture rather than short-term objectives

d. To make adjustments to the previous year’s budget, accounting for inflation

7. Glenda is creating a value proposition budget. Which of the following questions should her budgeting team be able to answer as they create the budget?

a. What was last year’s revenue?

b. What does the cost-benefit analysis reveal?

c. What are the results of our ethics assessment?

8. As an IT Director, Gary is held accountable for the IT budget in the company. He has complete control over the equipment and tools used by the company, and has to answer for that portion of the budget. This is an example of ______.

a. executive revenue

b. responsibility accounting

c. holistic accounting

d. total fiscal accountability