17) Lower-level managers will not actively participate in the budget process if they perceive upper management does NOT believe in the process.
18) Coordination is meshing and balancing all aspects of production or service and all
departments in a company in the best way for the company to meet its goals.
19) Research shows that challenging budgets improve employee performance because employees view falling short of budgeted numbers as a failure.
20) It is best to compare this year's performance with last year's actual performance rather than this year's budget.
21) When administered wisely, budgets promote communication and coordination among the various subunits of the organization.
Objective 6.3
1) Operating budgets include all of the following EXCEPT:
A) the revenues budget
B) the budgeted income statement
C) the administrative costs budget
D) the budgeted balance sheet
2) Operating budgets include the:
A) budgeted balance sheet
B) budgeted income statement
C) capital expenditures budget
D) budgeted statement of cash flows
3) The operating budget process generally concludes with the preparation of the:
A) production budget
B) distribution budget
C) research and development budget
D) budgeted income statement
4) Which budget is NOT necessary to prepare the budgeted balance sheet?
A) cash budget
B) budgeted statement of cash flows
C) budgeted income statement
D) revenues budget
5) Financial budgets include the all of the following EXCEPT:
A) capital expenditures budget
B) budgeted income statement
C) budgeted balance sheet
D) budgeted statement of cash flows
