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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?
Question 9
If a company plans to sell 48,000 units of product but sells 60,000, the