Reference no: EM132581322

Question 1: A limitation of comparing a company's performance against actual results of last year is that

a. it includes adjustments for future conditions

b. feedback is no longer a possibility

c. past results can obtain inefficiencies of the past year

d. the budgeting time period is set at one year

Question 2: Challenging business plans tend to

a. decrease line-management participation in attaining corporate goals

b. increase failure

c. increase anxiety without motivation

d. motivate improved performance

Question 3: A business plan can help implement

a. strategic planning

b. long-run planning

c. short run planning

d. all of the above

Question 4: To gain the benefits of business planning, _________________ must understand and support the budget

a. management at all levels

b. customers

c. suppliers

d. all of the above

Question 5: The sales forecast should be primarily based on

a. statistical analysis

b. input from sales managers and sales representatives

c. production capacity

d. input from the board of directors

Question 6: The sales forecast is influenced by

a. advertising and sales promotion

b. competition

c. general economic conditions

d. all of the above

Question 7: A sales forecast is

a. often the outcome of elaborate information gathering and discussions among sales managers

b. developed primarily to prepare next year's marketing campaign

c. solely based n sales of the previous year

d. a summary of product costs that influence pricing decisions

Question 8: Budgeted production depends on

a. the direct materials usage budget and direct material purchases budget

b. the direct manufacturing budget

c. budgeted sales and expected changes in inventory levels

d. the manufacturing overhead costs budget

Question 9: Which is NOT an External category in the planning process?

a. Additional competitors furnishing the same goods or services

b. Changes in industry credit policies

c. Financial resources

d. Improvements in machinery and equipment

Question 10: Which is NOT a Management category in the planning process

a. Capabilities of present machinery and equipment

b. Desire to raise the quality of products and services

c. To increase profitability of money invested

d. To move into additional geographic markets