Exam 4

Question 1

is looking ahead to see what actions

should be taken to realize particular goals

Answer 1

planning

Question 2

is looking backward, determining what actually happened and comparing it with the previously planned outcomes

Answer 2

control

Question 3

are financial plans for the future and are a key component of planning. They identify objectives and the actions needed to achieve them.

Answer 3

budgets

Question 4

is the comprehensive financial plan for the organization as a whole.
Typically for a 1-year period, corresponding to the fiscal year of the company.

Answer 4

master budget

Question 5

describe the income-generating activities of a firm: sales, production, and finished goods inventories. Outcome is a pro forma or budgeted income statement.

Answer 5

operating budget

Question 6

detail the inflows and outflows of cash and the overall financial position

Answer 6

financial budget

Question 7

the expected financial position at the end of the budget period is shown in a budgeted, or pro forma, balance sheet.

Answer 7

cash budget

Question 8

tells how many units must be produced to meet sales needs and to satisfy ending inventory requirements

Answer 8

production budget

Question 9

• Supplies information needed for the balance sheet

- Serves as an important input for the preparation of the cost of goods sold budget.

Answer 9

ending finished good inventory budget

Question 10

outlines planned expenditures for nonmanufacturing activities

Answer 10

selling and administrative expenses budget

Question 11

The alignment of managerial and organizational goals is often referred to as

Answer 11

goal congruence

Question 12

individual behavior that is in basic conflict with the goals of the organization.

Answer 12

dysfunctional behavior

Question 13

occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm to the firm.

Answer 13

myopic behavior