What are the four elements of the budgeting cycle?
a. 1. identifying the problem and uncerta...
What are the four elements of the budgeting cycle?
a. 1. identifying the problem and uncertainties
2. obtaining information
3. making predictions about the future
4. evaluating performance and learning
b. 1. planning the performance of the company as a whole and of its subunits
2. providing subordinate managers with a frame of reference
3. investigation into variations from the plan
4. use of feedback, new conditions and experience to develop a plan for the next period
c. 1. preparing the supporting schedules of the operating budget
2. preparing the budgeted income statement
3. preparing the budgeted balance sheet
4. preparing the cash budget
d. 1. coordination among subunits within the company
2. promotion of communication among subunits within the company
3. providing a framework for judging performance and facilitating learning
4. motivating managers and other employees
Answers: 3
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