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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.


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


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


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


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


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