21. T.F. When managers plan, they use budget information to review variances tha

Question

21. T.F. When managers plan, they use budget information to review variances that suggest waste in operating activities T.F. During the year, managers use budget information to communicate expectations about performance, to measure performance and motivate employees and to coordinate activities and allot resources. T.F. events in financial terms. T.F. results 23. A budget is a plan of action that reflects historical transactions, activities, and 24. Performance reports are used to compare actual operating results with planned

Explanation / Answer

21. True. While budgeting or preparing budgets, managers keep in mind the previous period actually incurred waste in operating activities and the variances occuring due to them and then set the budget accordingly.

22. True. Budget is set before hand of actual performance, in order to plan and execute accordingly and reinforce the management to achieve the set targets.

23. False. Budget is future oriented and not past-specific. It learns from the trends in past and undertakes the future prospects and changes in the internal and external scenarios to estimate in monetary terms the planned course of action during the period under consideration.

24. False. Performance reports are used to compare actual operating results with flexible results.

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