Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 23 views

    Business Planning

    Uploaded by

    Salar Cheema
    Businesses prepare budgets for several reasons: to coordinate activities between departments, encourage planning and decision-making, monitor and control costs, communicate plans, control activities, improve coordination. Budgets are also used to check differences between actual and budgeted data, control activities, ensure targets are met, and for planning and control of the business. However, budgets are not used to prepare annual financial statements or allocate responsibilities of managers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Business Planning

    Uploaded by

    Salar Cheema
    23 views4 pages
    Businesses prepare budgets for several reasons: to coordinate activities between departments, encourage planning and decision-making, monitor and control costs, communicate plans, control activities, improve coordination. Budgets are also used to check differences between actual and budgeted data, control activities, ensure targets are met, and for planning and control of the business. However, budgets are not used to prepare annual financial statements or allocate responsibilities of managers.

    Original Description:

    Original Title

    business planning

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Businesses prepare budgets for several reasons: to coordinate activities between departments, encourage planning and decision-making, monitor and control costs, communicate plans, control activities, improve coordination. Budgets are also used to check differences between actual and budgeted data, control activities, ensure targets are met, and for planning and control of the business. However, budgets are not used to prepare annual financial statements or allocate responsibilities of managers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views4 pages

    Business Planning

    Uploaded by

    Salar Cheema
    Businesses prepare budgets for several reasons: to coordinate activities between departments, encourage planning and decision-making, monitor and control costs, communicate plans, control activities, improve coordination. Budgets are also used to check differences between actual and budgeted data, control activities, ensure targets are met, and for planning and control of the business. However, budgets are not used to prepare annual financial statements or allocate responsibilities of managers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    1 Why does a business prepare budgets?

    1 co-ordinate business activities


    2 meet IAS requirements
    3 motivate management

    A 1 and 3 B 1 only C 2 and 3 D 2 only June 2018 P11 Q30

    2 Why might a business prepare a budget?

    A to determine the amount of bank loan it needs


    B to determine the skills of labour force
    C to identify its market share
    D to identify the quality of its products June 2018 P12 Q30

    3 What should not be a reason for business planning?

    A to assist with management decision making


    B to avoid departmental conflict
    C to identify staff redundancy opportunities
    D to support an application for funding June 2018 P13 Q30

    4 A company has recently introduced a system of budgetary control.

    Workers have given the following reasons for materials costs being more than budgeted.

    1 Budgeted material costs are incorrect.


    2 Production machinery is outdated and wastes materials.
    3 The company should purchase better quality materials to reduce wastage.

    Which reasons will cause actual material costs to be different from the budgeted costs?

    A 1, 2 and 3 B 1 and 2 only C 1 and 3 only D 2 and 3 only March 2018 P12 Q30

    5 What is not a reason for a business to prepare its budgets?

    A to control the business


    B to make a profit every year
    C to motivate staff
    Nov 2017 P11 Q30
    D to plan for the future
    6 Why is planning important to a business?

    1 to ensure that the business always makes a profit


    2 to employ the correct number of workers
    3 to reduce the risk of running out of inventory

    A 1 and 2 B 1 only C 2 and 3 D 3 only Nov 2017 P12 Q30


    7 Which statement is not a reason why a business prepares budgets?

    A to ensure coordination of the business activities


    B to identify potential problems in the future
    C to identify the responsibilities of managers
    D to prepare the financial statements for the year June 2017 P12 Q30

    8 Which is not a function of a budget?

    A helping maintain accurate double entry accounts


    B helping monitor and control operations
    C providing a financial plan for the business
    D providing a way to allocate resources June 2017 P13 Q30

    9 What is the objective of a system of budgetary planning and control?

    A to determine next year’s production


    B to determine next year’s profits
    C to motivate the manufacturing staff
    D to provide a system for communication, coordination and control Nov 2016 P12 Q30

    10 Who should be on the budget committee?

    A accounting and finance staff only


    B sales manager and production manager only
    C sales staff only
    D senior management representing every department in the organisation June 2016 P12 Q30

    11 What are the main purposes of budgeting?

    1 to control expenditure
    2 to forecast future expenditure
    3 to determine company strategy

    A 1, 2 and 3 B 1 and 2 only C 1 only D 2 only March 2016 P12 Q30

    12 In which way can a budget be used to help the management of a company?

    A ascertain actual profit


    B compare the company’s budget with its competitors
    C implement strategic planning
    D increase the company’s public image Nov 2018 P11 Q30
    13 Which statement identifies an advantage to a business of financial planning?

    A Not all managers are aware of business financial planning.


    B Specialist knowledge is required to prepare the financial plans.
    C The financial plans provide targets for managers to achieve.
    D Time and cost is required to prepare the financial plans. Nov 2018 P12 Q30

    14 Which statement about budgeting is not correct?

    A It helps managers to check differences between actual and budgeted data.


    B It helps managers to control activities.
    C It helps managers to ensure targets are met.
    D It helps managers plan operations. Nov 2018 P13 Q30

    15 What are the disadvantages of budgetary control systems?

    1 Budget holders can be blamed for uncontrollable adverse outcomes.


    2 Only financial outcomes are measured and considered.
    3 Rigid decision-making often occurs.

    A 1, 2 and 3 B 1 and 2 only C 1 and 3 only D 2 and 3 Feb/March 2019 P12 Q30

    16 Why might a business prepare budgets?

    1 to improve coordination between departments


    2 to encourage planning and decision-making
    3 to monitor and control costs

    A 1, 2 and 3 B 1 and 2 only C 1 and 3 only D 2 and 3 only June 2019 P11 Q30

    17 Why do businesses prepare budgets?

    1 to communicate plans
    2 to control activities
    3 to improve co-ordination
    4 to prepare their annual financial statements

    A 1, 2 and 3 B 1, 2 and 4 C 1, 3 and 4 D 2, 3 and 4 June 2019 P12 Q30

    18 Which statements concerning a budget are correct?

    1 It is always based upon historic data.


    2 It is always prepared for a year ahead.
    3 It needs the full commitment of all managers in order to work well.
    4 It is used for planning and control of a business.

    A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4 June 2019 P13 Q30


    30 A business is preparing this year’s budget by adding a percentage to last year’s budget.

    Which statements are true?

    1 Budget holders cannot be paid based on their performance.


    2 Inefficiencies can always be eliminated.
    3 Previous costs are carried forward into the next budget.

    A 1 and 2 only B 1, 2 and 3 C 2 and 3 only D 3 only Nov 2019 P11 Q30

    You might also like