1.3   Identify the five steps of decision making and the role of relevant accounting information.


1) Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals.


2) A bonus paid to high performing sales persons is an example of an intrinsic reward.


3) Control includes the performance evaluation of personnel and operations.


4) Management should evaluate the difference between planned and budgeted amounts.


5) The problem identification function is the accumulation of data and reporting reliable results to all levels of management.


6) Learning arises from comparing actual performance to expected performance.


7) The process of preparing a budget enhances coordination and communication throughout the company.

8) A budget may be used as a planning tool, but not as a control tool.


9) Control includes deciding what feedback to provide that will help with future decision making.


10) A budget is defined as

A) the qualitative expression of a plan.

B) an aid in controlling income.

C) the quantitative expression of a plan of action by management.

D) the quantitative expression of a plan and an aid in controlling income.

E) an aid in coordinating and implementing a plan.




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