1)Budgets are statements of management\'s plans stated in financial terms. True

ID: 2372743 • Letter: 1

Question

1)Budgets are statements of management's plans stated in financial terms.

True or False

2)A budget is a means of communicating a company's objectives to external parties.

True or False

3)Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.

True or False

4)The tops down approach to budgeting always results in the most effective plan

True or False

5)The first step in the budget process is often the sales forecast.

True or False

6)Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity

True or False

7)Management by exception means that management will investigate areas where actual results differ from planned results if the items are material

True or False

8)A distinction should be made between controllable and noncontrollable costs when reporting information under responsibility accounting

True or False

Ans-1)True

Ans-2)False

Ans-3)True

Ans-4)True

Ans-5)True

Ans-6)True

Ans-7)True

Ans-8)True

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