Professional Documents
Culture Documents
CC 4
CC 4
The procedure for setting profit objectives in which the determination of profit objectives is subordinated to the
planning, and the objectives emerge as the product of the planning itself is the
A. a priori method C. practical method
B. theoretical method D. a posteriori method
40. The procedure for setting profit objectives in which management specifies a given rate of return that it seeks
to realize in the long run by means of planning toward that end is the
A. a priori method C. pragmatic method
B. theoretical method D. ad hoc method
50. Budgeting process in which information flows top down and bottom up is referred to as:
A. Continuous budgeting. C. Perpetual budgeting
B. Participative budgeting D. Joint budgeting
42. Which of the following is not a potential problem with participative budgeting?
A. setting standards that are either too high or too low
B. padding the budget
C. build slack into the budget
D. all of the above are potential problems
57. Which one of the following is an external factor that would need to be considered in forming an initial budget
proposal?
A. changes in product design
B. introduction of a new product
C. competitors' actions
D. adoption of a new manufacturing process
30. Using the concept of ‘expected value” in sales forecasting means that the sales forecast to be used is
A. developed using the indicator method
B. the sum of the sales expected by individual managers
C. based on expected selling prices of the products
D. based on probabilities
31. Several sales forecasts are available from different sources and the managers have good ideas about their
likelihoods. This situation call for the use of
A. the expected value concept C. indicator methods
B. historical analysis D. a scatter diagram
56. Which of the following budgets provides the data for the preparation of the direct labor costcc