You recently attended a workshop on budgeting and overheard the following comments as you walked to the refreshment table:
1. "Budgets are the same regardless of the size of an organization or management's role in the budgeting process."
2. "Budgets can include financial or non financial data. In our Organization, we plan the number of hours to be worked and the number of customer contacts we want our salespeople to make."
3. "All Budgets are complicated. You have to be an expert to prepare one."
4. "Budgets don't need to be highly accurate. No one in our company stays within a budget anyway."
Do you agree or disagree with each of comment? Explain your answer (short)
Solution Preview
1. Disagree. Budgets are a function of size and the management's role in the budgeting process. A large organization with many divisions would prepare budgets by the division and then consolidate while a small organization would straight away make the budget. In the same way the budget would differ based on management's role. If management delegates the authority to make the budget, the budget would be participative and would reflect what can be achieved since everybody has a stake in the budget. If the management prepares the ...
Solution Summary
The solution discusses the given characteristics of budgets
... What common or characteristic features do you think make a project unsuccessful ... successful (software projects completed on-time and on-budget among American ...
... CLASSIFICATION PURPOSE AND DISTINGUISHING CHARACTERISTICS. ...budget; to establish controls to ensure that Agency/Group/Department budgets remain structurally ...
... 4. Which of the following characteristics is most important in differentiating ... 16 Which of the following represent capital budgeting problems for multinational ...
... above in planning all their activities and determine the budgets needed for those ... 1. Provide a rationale for and characteristics of an excellent performance ...
... cooperation, they also encourage the development of characteristics that smooth human ... Accountants are involved in the preparation and presentation of budgets. ...
... Product factors - Promotion must be tailored to the characteristics, features, and ... New and smaller businesses with limited budgets may only be able to afford ...
... In the capital budgeting process, are qualitative factors also ... The projects have similar risk characteristics and their cost of capital is 15 percent. ...
... a manager must possess the following traits: 1. Competence in handling personnel 2. Ability to create and carry out policies 3. Handle budgets 4. Implement the ...
... Although there are several characteristics, traits and skills that are indicative ... can complete projects within expected timeframes and budgets while utilizing ...
...characteristics of a good proposal, however, the characteristics of good ... Portfolio theory capital budgeting financing dividend policy and risk. ...
