70.2K

Verified Solution

Link Copied!

Please answer the five multiple choice questions.

5. _________ mean(s) that the organization will attempt to reach much higher goals with the current budget.

Traditional budgeting

Stretch goals

The beyond budgeting approach

Budget slack

6. Many intangible assets:

do not appear on the balance sheet since it is difficult to place a reliable financial value on them.

should be evaluated with ROI and other performance measures.

can be measured and managed with current financial control systems.

are unimportant because they have no physical substance.

7. A chain of cause-and-effect relationships that appropriately link the four balanced scorecard

a high return on investment causes customer loyalty that results in skilled production workers that improve process quality.

skilled production workers help to produce process quality that results in customer loyalty that helps to increase return on investment.

customer loyalty results in a high return on investment that results in the ability to attract skilled production workers that improve process quality.

improved process quality results in a high return on investment that causes customer loyalty that results in the ability to attract skilled production workers.

8. Which of the following is NOT a role of budgeting in organizations?

performance evaluation.

historical financial statements.

allocation of resources.

motivation of employees.

9. The MOST likely result of a negotiated transfer price is that it:

takes away the ultimate responsibility of the resulting transfer price from the two parties.

may reflect the relative negotiating skills of the two parties.

generally results in transferring more than the optimum number of units.

reflects purely economic considerations.

10. The variances that should be investigated by management include:

only unfavorable variances.

only favorable variances.

all variances, both favorable and unfavorable.

both favorable and unfavorable variances that are considered significant in amount for the company.

Answer & Explanation Solved by verified expert

See Answer