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Chapter 22Master Budgets and PlanningTrue / False Questions?1.?Consulting the persons affected by a budget when it is prepared can provide an effective means of motivation and cooperation.?Answer: True ?Blooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Process of Budget AdministrationTopic: Importance and Benefits of Budgeting?2.?A budget can be an effective means of communicating management's plans to the employees of a business.?Answer: TrueBlooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Process of Budget AdministrationTopic: Importance and Benefits of Budgeting?3.?Budgets are normally more effective when all levels of management are involved in the budgeting process.?Answer: True ?Blooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Important and Benefits of BudgetingTopic: Process of Budget Administration?4.?One of the major benefits of formal budgeting is the positive effect it can have on employee attitudes if applied correctly.?Answer: True ?Blooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Importance and Benefits of BudgetingTopic: Process of Budget Administration?5.?Budgeting is an informal plan for future business activities.?Answer: False ?Blooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Importance and Benefits of Budgeting?6.?A budget is a formal statement of future plans, usually expressed in monetary terms.?Answer: True ?Blooms: RememberAACSB: CommunicationAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 22-C1Topic: Importance and Benefits of Budgeting ?7.?Past performance is the best overall
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