Budgetary Control And Responsibility Accounting

Budgetary control involves all of the following activities except:

• Develop budget

• Edit budget

• Take corrective action

• Modify future plans

Which one of the following is a limitation of static budget reports?

• It is appropriate for fixed costs

• Appropriate for evaluating a manager's effectiveness in controlling costs

• Not appropriate for variable costs

• None of the above

The three basic types of responsibility centers are:

• Revenue center

• Cost center

• Profit center

• Investment center

Developing a flexible budget involves how many steps?

• 5

• 1

• 3

• 4

A ________ center is any individual who has control and is accountable for activties.