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Select the Term from the List Provided That Best Matches

Question 152

Matching

Select the term from the list provided that best matches the description provided.

Premises:

Responses:

Composed of numerous separate but interdependent departmental budgets covering sales, production, and administrative expenses

Budgeting

Budgeting technique that allows subordinates and upper-level managers to work together in setting budgetary targets

Capital budget

Financial planning activities that cover the intermediate range of time (such as whether to buy or lease equipment)

Pro forma financial statements

Activities associated with long-range decisions such as defining the scope of the business and deciding which products to develop

Budget committee

Budgeted financial statements

Master budget

The group of individuals responsible for the coordination of budgeting activities

Operating budget

Examples of these budgets include sales budget, inventory purchases budget, and cash budget

Strategic planning

Budgeting technique that keeps managers constantly involved in the budget process

Participative budgeting

Form of planning that formalizes goals and objectives of a company in financial terms

Perpetual budgeting

Premises:

Composed of numerous separate but interdependent departmental budgets covering sales, production, and administrative expenses

Budgeting technique that allows subordinates and upper-level managers to work together in setting budgetary targets

Financial planning activities that cover the intermediate range of time (such as whether to buy or lease equipment)

Activities associated with long-range decisions such as defining the scope of the business and deciding which products to develop

Budgeted financial statements

The group of individuals responsible for the coordination of budgeting activities

Examples of these budgets include sales budget, inventory purchases budget, and cash budget

Budgeting technique that keeps managers constantly involved in the budget process

Form of planning that formalizes goals and objectives of a company in financial terms

Responses:

Budgeting

Capital budget

Pro forma financial statements

Budget committee

Master budget

Operating budget

Strategic planning

Participative budgeting

Perpetual budgeting

Correct Answer:

Premises:

Responses:

Composed of numerous separate but interdependent departmental budgets covering sales, production, and administrative expenses

Budgeting technique that allows subordinates and upper-level managers to work together in setting budgetary targets

Financial planning activities that cover the intermediate range of time (such as whether to buy or lease equipment)

Activities associated with long-range decisions such as defining the scope of the business and deciding which products to develop

Budgeted financial statements

The group of individuals responsible for the coordination of budgeting activities

Examples of these budgets include sales budget, inventory purchases budget, and cash budget

Budgeting technique that keeps managers constantly involved in the budget process

Form of planning that formalizes goals and objectives of a company in financial terms