Answer the following statements true (T) or false (F)
1. budget is a financial plan that managers use to coordinate a business's activities.
2. An objective of the budgeting process is to communicate a single, unified, comprehensive plan for the
business.
3. All organizations use one standardized budgeting process.
4. Budgetary slack occurs when managers intentionally overstate expected revenues or understate
expected expenses.
5. The most important part of a budgeting system is getting managers and employees to accept the
budget.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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How would property taxes paid on a factory building be classified in a manufacturing company?
A. Fixed, period cost. B. Variable, period cost. C. Variable, product cost. D. Fixed, product cost.
Renaldo is creating a business plan. His first formal step should be to
A. conduct an opportunity analysis. B. hire the right people. C. get others to support one's ideas. D. secure financing. E. write a business plan.
Which of the following is an ADVANTAGE of a sole proprietorship?
A) The owner's unlimited liability B) The lack of continuity upon death of the owner C) The ease of start up D) The ability to raise capital
During a recent accounting period, Falcon Express' shipping department processed 26 orders. Each order typically takes four hours to complete. However, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid $14 per hour, the company's non-value-added cost would be:
A. $56. B. $1,456. C. $1,820. D. $0. E. $364.