Theories

Question 1

a plan expressed in quantitative terms, on how to acquire and
use the resources of an entity during a certain future period of time

Answer 1

Budget

Question 2

The process of creating a formal plan and translating goals
into a quantitative format

Answer 2

Budgeting

Question 3

a detailed set of information and guidelines about the
budgeting processes.

Answer 3

Budget Manual

Question 4

the length of time for which a budget is to be prepared
and implemented.

Answer 4

Budget Period

Question 5

it represents the overall plan of the organization for a given budget period

Answer 5

Master Budget

Question 6

It consists of all the individual budgets for each segment of the
organization aggregated or consolidated into one overall budget for the entire firm

Answer 6

Master Budget

Question 7

Master Budget composed of: (3)

Answer 7

Operating Budget
Financial Budget
Special Budget

Question 8

It includes performance and capital budgets.

Answer 8

Special Budget

Question 9

the budgeted balance sheet as of the end of a
certain period

Answer 9

Financial Budget

Question 10

the budgeted income statement for a certain budget period

Answer 10

Operating Budget

Question 11

The activities to be incurred are to be prioritized based on its order of relevance in line with a defined goal in the coming period without regard to past experience or present condition

Answer 11

Zero-based Budgeting

Question 12

a time framed is maintained (12 mos. or 6 mos.), and when a segment in a budgeted time frame expire and is dropped, a new segment is to be added to maintain the same time frame.

Answer 12

Continuous (Rolling) Budgeting

Question 13

this budgetary approach emphasizes the decentralization of budgetary decision-making.

Answer 13

Site-based Budgeting

Question 14

it is done over the entire life span of a product
starting from its period of conception, to infancy, to growth, expansion, up to maturity.

Answer 14

Life-cycle Budgeting

Question 15

It places local managers and other staff at the center of the budget preparation process, making them responsible for both the preparation and the maintenance of the budget.

Answer 15

Site-based Budgeting

Question 16

budgets are developed through joint
decision-making by top management and operating personnel

Answer 16

Participatory Budgeting

Question 17

budgets are prepared by top management with
little or no input from operating personnel.

Answer 17

Imposed Budgeting

Question 18

costs and expenses are not segregated to
fixed and variable components and the budgeted costs, without the adjustments to actual
capacity, serves as the basis in evaluating actual performance.

Answer 18

Static (fixed) Budgeting

Question 19

prepared for different level of activity, costs and
expenses are segregated to fixed and variable components giving way to the
determination of estimated costs based on actual capacity.

Answer 19

Flexible Budgeting

Question 20

expressed in units of materials, number of
employees, or number of man hours or service units rather than in pesos.

Answer 20

Physical Budgeting

Question 21

identifying responsibility centers where
revenues and costs are controlled by a responsible officer.

Answer 21

Responsibility Budgeting

Question 22

– it is the practice of linking the allocation
of resources to the production outcomes.

Answer 22

Outcome-focused Budgeting

Question 23

The objective is to allocate government
resources to those service providers or programs that use them most effectively.

Answer 23

Outcome-focused Budgeting

Question 24

it is referred to as the “historical” approach
because administrators and chief executives often base their expenditure requests on
historical expenditures and revenue data.

Answer 24

Line-item Budgeting

Question 25

It also offer flexibility in the amount of control
established over the use of resources, depending on the level of expenditure detail (e.g.,
fund, function, and object) incorporated into the document.

Answer 25

Line-item Budgeting

Question 26

, budgeted expenditures are based on a standard cost of inputs multiplied by
the number of units of an activity to be provided in that time period.

Answer 26

Performance Budgeting

Question 27

are established as a basis of actions and
performance; also as a motivational factor.

Answer 27

Standard-setting

Question 28

concrete plans, targets and activities are develop

Answer 28

Planning

Question 29

goals and processes should be
effectively communicated and coordinated to encourage participation, involvement,
commitment, and ownership of the organizational plans

Answer 29

Communication & Coordination

Question 30

actions are checked to assess conformity
with plans and to make on-line corrections and adjustments.

Answer 30

Monitoring of activities

Question 31

Results are to be evaluated to determine what happened and make
end-of-the-line corrections and adjustments.

Answer 31

Evaluation of results

Question 32

5 purposes on why we have to budget

Answer 32

Standard-setting
Planning
Communication & Coordination
Monitoring of activities
Evaluation of results