Multiple choice

1. When discussing the roles of budgets, a planning role in the budgeting process includes: 

 measuring outcomes against planned amounts 

 developing the master budget 

 assessing performance 

 reporting actual amounts at the end of the budgeting period 

2. Operating budgets and financial budgets: 

combined form the master budget 

are prepared before the master budget 

are prepared after the master budget 

have nothing to do with the master budget 

3. Discretionary expenditures: 

are usually planned for first 

are amounts paid for the use of flexible resources 

are not determined by the organization’s level of production 

increase in amount during periods of greater activity 

4. In __________, as one budget period passes, planners delete that budget period from the master budget and add another one. 

zero-based budgeting 

periodic budgeting 

incremental budgeting 

continuous budgeting