Prelims Flashcards
True or False
A departmental budget is a budget of income and expenditure applicable to a particular function.
True
True or False
In preparing the sales budget, the sales team should consider past sales performance, market trends, seasonal fluctuations, and hearsay about the industry prices.
False
True or False
The High-Low method involves finding the average value of the costs incurred at the various output levels.
True
True or False
Time series analysis uses histograms in forecasting data.
True
True or False
Big data refers to the information that communities generate each year.
True
True or False
A budget is a detailed plan expressed quantitatively for producing and utilizing the company’s resources over a period.
True
True or False
The sales volume is the principal budget factor since it sets the limit for all business activities.
True
True or False
The operating budget typically covers two years of the business cycle.
False
True or False
Companies may use presentation software to build business models to assist the forecasting and planning process.
False
True or False
Forecasts are subject to error.
True
It is an accurate quantitative plan for gathering and utilizing financial and other resources over a predetermined period.
Budget
It is determined by applying linear regression.
Degree of Correlation
It is a forecasting technique that uses a series of figures or values over time.
Time Series Analysis
It is the time frame for which a budget is created and used, and a control period may be added.
Budget Period
It is the company’s budget that covers its entire calendar or fiscal year.
Operating Budget
