B4

Question 1

Why does flexible budgeting separates the fixed and variable costs?

Answer 1

It separates the costs that are fixed from costs that are variable so that various output levels can be entered in the flexible budget to see their overall effect on costs.

Question 2

Does activity-based budgeting(ABB) uses volume-based and activity based cost drivers? does it separate fixed and variable cost pools?

Answer 2

yes

Question 3

what does activity-based budget emphasis on

Answer 3

teamwork, synchronized activity, and customer satisfaction

Question 4

what does traditional budget emphasis on

Answer 4

increasing management performance. It continues currect practices.

Question 5

what is Kaizen budgeting

Answer 5

it focuses on finding ways to reduce cost. It incorporates continuous improvement into each budget.it is based on planned future operating practices.

Question 6

what is zero- based budget

Answer 6

it begin with an assumption of zero cost and cost are added as they are justified; however, positive net incomeis often a goal of the firm.

Question 7

what is ADD uses

Answer 7

it uses multiple cost drivers generally, and flexible budget only allow variable cost to vary directly with projected sales.

Question 8

what is the chronological order in budget preparation

Answer 8

sales budget, production budget, purchases budget, COGS budget, and administrative budget

Question 9

what are the advantages of activity-based budgeting

Answer 9

1.better identification of resource needs 2. linking of cost to outputs 3. identification of budgetary slacks

Question 10

what is flexible budgeting

Answer 10

it separates the cost that are fixed from the costs that are variable so that various output levels can be entered in the flexible budget to see their overall effect on costs