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Business essential - Budget Flashcards | StudBud
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Business essential - Budget
Business essential - Budget
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Flashcards
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Questions
11
Answers
1
How does budgeting help in decision-making?
By recording historical data only
By eliminating the need for managers
By limiting spending without analysis
By providing a clear framework for evaluating options
2
How can managers use budgets to motivate employees?
By setting achievable and clear performance goals
By eliminating targets altogether
By punishing underperformance
By micromanaging daily tasks
3
Budgets can help managers identify:
Employee weaknesses
Variances between actual and planned performance
Market share of competitors
Seasonal product trends
4
Managers use budgets to:
Monitor and control operations
Ignore financial constraints
Set unrealistic targets
Eliminate the need for planning
5
What is a primary advantage of budgeting for a business?
It eliminates all financial risks
It provides a plan for allocating resources
It removes the need for financial reports
It eliminates all financial risks
6
Budgeting helps managers plan for future activities and allocate resources efficiently.
True
False
7
What is variance analysis in budgeting?
Creating a new budget from scratch
Comparison of actual results with budgeted figures
Analysis of competitor budgets
Outsourcing financial planning
8
Managers can use budgets to identify and respond to variances between expected and actual performance.
True
False
9
Budgets are only useful for large companies and have no benefits for small businesses.
True
False
10
One advantage of budgeting is that it helps coordinate activities across different departments.
True
False
11
Which of the following is NOT an advantage of budgeting?
Encourages forward planning
Guarantees market expansion
Enhances communication within the organization
Helps in performance evaluation
