Chapter 22 Quiz Question 1
Budget reports comparing actual results with planned objectives should be prepared only once a year. Question 2
A static budget is changed only when actual activity is different from the level of activity expected. Question 3
Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable. Question 4
Budget reports provide the feedback needed by management to see whether actual operations are on course. Question 5
The manager of an investment center can improve ROI by reducing average operating assets. Question 6
What is budgetary control? Question 7
A static budget is appropriate in evaluating a manager ' s performance if Question 8
What is the primary difference between a static budget and a flexible budget?