Chap 6 - Planning, Control & Analysis Flashcards
1
Q
Strategic Planning vs. Tactical Planning
A
Strategic refers to setting long-term overall goals and policies which help guide the organizations’ long run operations. Tactical on the other hand focuses on short-term objectives and temporary techniques.
2
Q
What is the advantage of Flexible Budgets?
A
They can readily adapt to changes in variable costs.
3
Q
What is the order of preparing budgets?
A
- Sales budget
- Production budget
- Direct/Raw materials purchases budget
- Cash Disbursements budget
- Budgeted FS
4
Q
In an Activity-Based costing system, what is eliminated to accomplish Cost Reduction?
A
Nonvalue-adding activities
