Budgeting Accounting Exam 3HR

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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

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

 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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