1. It is important that budgets be accepted by:
- Division managers
- Department heads
- Supervisors
- All of these
2. The qualitative forecasting method that individually questions a panel of experts is ________________
- executive opinions.
- sales force polling.
- the Delphi method.
- consumer surveys.
3. The regression statistic that measures how many standard errors the coefficient is from zero is the ________________
- correlation coefficient.
- coefficient of determination.
- standard error of the estimate.
- t-statistic.
4. Which of the following statements regarding research and development is incorrect?
- R&D should be greater in high-technology divisions.
- R&D should focus on the current products.
- R&D should be consistent with the department's goals.
- A critical aspect of R&D is assessing risk.
5. Priority budgeting that ranks activities is known as:
- Top-down budgeting
- Bottom-up budgeting
- Zero-base budgeting
- Participative budgeting
6. Which of the following is a disadvantage of the payback technique?
- It is difficult to calculate.
- It relies on the time value of money.
- It can only be calculated when there are equal annual net cash flows.
- It ignores the expected profitability of a project.
7. There are several approaches that may be used to develop the budget. Managers typically prefer an approach known as participative budgeting. Discuss this form of budgeting and identify its advantages and disadvantages.