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budgeting accounting exam 3hr

Short Answer

1. Describe three advantages of budgeting. Which advantage of the three that you described is the most advantageous and why?

 2. What is a flexible budget? How can a flexible budget be used as a control?

3. Why is it important to budget headcount? What should the G&A budget be based on?

4. How does cash flow software help a company manage its cash? What is cash variance analysis?

5. What is included in a capital expenditure budget? What are special capital expenditures?

Long Answer

1. The Mission of College USA is to become the premier provider of high-quality online, graduate studies leading to various business degrees. At the time of the review process, management needs to be sure that the planned course of action will lead to the fulfillment of the organization’s mission. Name and give an example of the next four steps that the college should take in articulating its strategic goals, beginning with defining a strategy.

2. How does the high-low method estimate fixed and variable costs? What is an advantage and a disadvantage of this method?

 3. How is a G&A budget generated? What should be taken into consideration when budgeting G&A?

 4. Why is a cash budget important to prepare? Describe the Cash Receipts and Cash Disbursements sections of a cash budget.

5. What should a capital expenditure policy take into account? Why is capital budgeting important?

6. How does a forecast reduce risk for a company? What is the qualitative approach to forecasting?

7 What is activity-based management? What is the advantage of this type of budgeting?



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