1. Select the two statements from the list below that are appropriate to describ
ID: 326776 • Letter: 1
Question
1. Select the two statements from the list below that are appropriate to describe scenario planning:
a) Used to stress test the business plan with possibilities that have not yet been included in the plan.
b) Useful in assessing the overall financial risk inherent in a set of financial projections, especially the break-even point.
c) Works best when focused on what is genuinely beyond the control of management.
d) Was pioneered by the Xerox Corporation in the 1970s.
2. Which of the following is (are) not issues commonly encountered in the preparation of reliable and relevant management reports?
a) Hidden Variances
b) Data Accuracy
c) Abnormal Events
d) Identification of Trends
e) None of them
3. Select the group of words missing from the statement below about the nature of budgetary control:
“The objective of budgetary control using ______ analysis is not simply to show the variances by type, but to assist management in focusing on the areas of the business that require _______ and possible _______ action. With only a few exceptions such as completely fixed and ________ items of expenditure, _____ line items in any budget report will show a variance of one type or the other. This does not mean that management should concern itself with every variance, and follow through with appropriate corrective action.”
a) Budget, Understanding, Corrective, Unbudgeted, Significant
b) Variance, Attention, Management, Unbudgeted, All
c) Budget, Understanding, Management, Predictable, Significant
d) Variance, Attention, Corrective, Predictable. All
4. True or False? In the analysis of Revenue Variances, when the Price and Volume Variances are different the Price-Volume Variance will be unfavorable.
a) True
b) False
5. The calculation of the F and B Cost of Sales Cost-Volume Variance is determined like this:
a) (Budgeted Cost - Actual Cost) x (Budgeted Volume - Actual Volume)
b) (Actual Cost – Budgeted Cost) x (Budgeted Volume – Actual Volume)
c) (Budgeted Cost – Actual Cost) x (Actual Volume – Budgeted Volume)
Total F&E; Cost of Sales Covers Average Staff F&B; Cost per Cover Total Sold Costs Expenses Budget Actual 34 682 34 286 72'830 72'000 24'277 24'000 165846 179'554 3.96 68739 4.87 83554Explanation / Answer
1. a) Used to stress test the business plan with possibilities that have not yet been included in the plan.
b) Useful in assessing the overall financial risk inherent in a set of financial projections, especially the break-even point.
2. d) Identification of Trends
3. d) Variance, Attention, Corrective, Predictable. All
4. False
5. a) (Budgeted Cost - Actual Cost) x (Budgeted Volume - Actual Volume)
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