What is the starting point for preparing a master budget?
Question: The sales budget is the starting point for the master budget, as shown in Figure 9.1 “Master Budget Schedules”.
What is the starting point of budgeting?
It is the starting point in budgeting because sales impacts/ drives virtually every aspect of a firm’s activities because sales will determine revenues and direct costs. Revenue and costs are critical to budgeting and cash flows. Sales forecasting forms the backbone of marketing.
What is the starting point of the master budget process quizlet?
sales budget
What is the single most important output in preparing financial budgets?
0 out of 1 points The single most important output in preparing financial budgets is the Selected Answer: budgeted income statement.
What is a balanced scorecard quizlet?
Balanced Scorecard. a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals.
What is balanced scorecard and how it is useful?
A balanced scorecard is a strategic management performance metric that helps companies identify and improve their internal operations to help their external outcomes. It measures past performance data and provides organizations with feedback on how to make better decisions in the future.
What are the four areas of a balanced scorecard?
The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.
What is the purpose of a balanced scorecard quizlet?
a strategic-based performance management system that typically identifies objectives and measures for four different perspectives: the financial perspective, the customer perspective, the process perspective, and the learning and growth perspective.
Why is it important for management to use a balanced scorecard?
The Balanced Scorecard can be used to guide the design of performance reports and dashboards. This ensures that the management reporting focuses on the most important strategic issues and helps companies monitor the execution of their plan.
What is one reason that a balanced scorecard might be considered balanced?
What is one reason a Balanced Scorecard might be considered “balanced”? It includes both leading and lagging performance indicators. Which of the following do not describe characteristics of enterprise IT?
Which is a disadvantage of decentralization quizlet?
Disadvantages of decentralization include potential duplication of resources and suboptimal decisions, or decisions that are not in the best interest of the organization overall.
Which of the following is advantage of decentralization?
-Duplication of effort is minimized. -Companies can develop their own managers internally by giving lower-level managers practice in developing their decision-making skills. -Top management is free to focus on the long-term strategies of the organization. -All of these answer choices are advantages of decentralization.
Which is a disadvantage of decentralization?
The main disadvantage of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents.
What are the pros and cons of centralization?
10 Pros and Cons of Centralization
- It employs standardization of work.
- It ensures unbiased work allocation.
- It promotes flexibility.
- It does not allow replication of work.
- It offers an area of specialization.
- It encourages dictatorship.
- It brings out the negatives in an administrative system.
- It is seen as inflexible.
Is Centralization a good thing?
There are a number of benefits to a centralized marketing team, but by far the main advantage is the economies of scale it provides. With skills, resources, systems, vendor management, and data all housed in the one department, marketing budgets and investments are easily managed and controlled.
What are the features of centralization?
Features of Centralization
- #1. Top management:
- #2. Authority to make a decision is in the hand of top management only:
- #3. Information flows from the upper level to lower levels:
- #4. Longer time to make decisions:
- #5. Centralization is suitable for a small organization:
- #6. Inflexible in nature:
- #1.
- #2.
What makes centralized decision-making slower?
With a centralized organization, change is typically slower because of the many levels of approval and decision-making. With decentralized government, this process is quicker.