1. Select the group of words missing from the statement below about the nature o
ID: 326767 • Letter: 1
Question
1. Select the group of words missing from the statement below about the nature of operations budgets:
“An operations budget is a detailed representation of the future results, financial position, and cash flows estimated by ________ during a certain period of time. A budget may only be ______ once a year, depending on how frequently ownership and management want to revise the information. A budget is compared to ______ results to determine ________ from expected performance.”
a) Finance, Updated, Actual, Profitability
b) Management, Reviewed, Forecast, Variances
c) Finance, Reviewed, Forecast, Profitability
d) Management, Updated, Actual, Variances
2. Complete the following sentence using the most appropriate phrase of those shown below:
“When actual performance does not meet budget expectations……….”
a) This indicates that the strategic objectives of the company are no longer relevant.
b) Management takes steps to bring actual results back into line with the budget.
c) The business strategy has to be changed.
d) The budget must be changed.
3. Which of the statements below is (are) wrong?
a. A forecast is an estimate of what will actually be achieved and is typically limited to major items of revenue and expense.
b. A forecast is updated at regular intervals, as and when the information is needed.
c. A forecast may be used for short-term operational considerations, such as adjustments to staffing, inventory levels, and the production plan.
d. A forecast may be used for more strategic purposes when, for example, planning a new business or an acquisition.
e. A forecast is compared to actual results in order to update the budget on a monthly basis.
f. None of them
4. Which of the following is (are) not a pattern that can be seen in historical data?
a. Trend
b. Gradual
c. Seasonal
d. Cyclical
e. Regression
Explanation / Answer
1. b) Management, Reviewed, Forecast, Variances
2. b) Management takes steps to bring actual results back into line with the budget.
3. a) A forecast is an estimate of what will actually be achieved and is typically limited to major items of revenue and expense.
4. e) Regression
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.