Value of Budgeting (AQA A-Level Business): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does the 'value of budgeting' refer to?
What does the 'value of budgeting' refer to?
Weighing advantages vs disadvantages
How do budgets help with setting targets for performance?
How do budgets help with setting targets for performance?
Establish specific financial goals
What do budgets help identify by comparing actual vs budgeted spending?
What do budgets help identify by comparing actual vs budgeted spending?
Unnecessary spending or wasteful practices
What does the budgeting process encourage managers to consider?
What does the budgeting process encourage managers to consider?
Financial consequences of their decisions
What higher-level psychological needs can delegated budgets fulfil according to Maslow?
What higher-level psychological needs can delegated budgets fulfil according to Maslow?
Autonomy and achievement
How do budgets facilitate internal communication?
How do budgets facilitate internal communication?
Provide a common financial language
What major drawback occurs when budget plans become too rigid?
What major drawback occurs when budget plans become too rigid?
Difficult to respond to changing conditions
What problems do wide variances between budgeted and actual figures create?
What problems do wide variances between budgeted and actual figures create?
Demotivates staff and wastes resources
What does a negative variance in sales revenue indicate?
What does a negative variance in sales revenue indicate?
Actual sales are lower than budgeted
How do senior managers maintain control when budgets are delegated to departmental managers?
How do senior managers maintain control when budgets are delegated to departmental managers?
By monitoring budget performance