Content Frame
Note for screen reader users: There is text between the form elements on this page. To be sure that you do not miss any text, use item by item navigation methods, rather than tabbing from form element to form element.
Skip Breadcrumb Navigation
Home  arrow Introduction to Management Accounting, 2e  arrow Chapter 9  arrow True or False

True or False

This activity contains 5 questions.

Question 1.
The usual starting point in budgeting is to make a forecast of net income.

Open Hint for Question 1 in a new window.
End of Question 1

Question 2.
If amounts in the sales forecast change, amounts in all other budgets will also change.

Open Hint for Question 2 in a new window.
End of Question 2

Question 3.
After a budget is agreed upon and finalized by the management team, the amounts should not be changed for any reason.

Open Hint for Question 3 in a new window.
End of Question 3

Question 4.
The preparation of the operating budget is extremely time consuming and complicated.

Open Hint for Question 4 in a new window.
End of Question 4

Question 5.
When the operating budget is used as a control device, managers may be motivated to budget for higher sales than actually anticipated.

Open Hint for Question 5 in a new window.
End of Question 5

Pearson Copyright © 1995 - 2011 Pearson Education . All rights reserved. Pearson Prentice Hall is an imprint of Pearson .
Legal Notice | Privacy Policy | Permissions

Return to the Top of this Page