Cfi Fmva Flashcards Exam With Correct Answers #5
Identify which trait below about incremental budgeting is FALSE
1. Inputs or actives are determined by the budgeted outputs
2. It takes previous years' actual figure and add or subtract a certain percentage from it
to make the new year's budget
3. It can carry over mistakes or slack budgets from previous years
4. It is the most commonly used method of budgeting - correct answer Inputs or actives
are determined by the budgeted outputs
Identify which of the following is not a goal of the variance dashboard
1. Conveying a lot of information as quickly as possible
2. Using graphs in place of tables where appropriate
3. Presenting several different types of information all on one screen
4. A detailed written report - correct answer A detailed written report
Identify the cause of an unfavorable variance in profit
1. Actual labor cost is lower than budget
2. Actual sales volume is higher than budget
3. Actual sales price is higher than the budget
4. Actual material cost is higher than the budget - correct answer Actual material cost is
higher than the budget
What is the main argument of "Beyond Budgeting"?
1. There should be a shift from operational budgeting to cash budgeting
2. Firms today need to be more flexible and responsive to deal with unpredictable
change, hyper competition and increasingly fickle consumers
3. Traditional budgeting principles are too limited and should be increased to 12
principles
4. The traditional budgeting methods are too rigid and should be eliminated altogether -
correct answer Firms today need to be more flexible and responsive to deal with
unpredictable change, hyper competition and increasingly fickle consumers
Using the PEST analysis, which of the following should a company like Apple Inc. Worry
about the most?
1. Technological forecasting and trends
2. Economical forecasting and trends
3. Political forecasting and trends
4. Social forecasting and trends - correct answer Technological forecasting and trends
Which of the following is the best KPI for measuring customer satisfaction?
1. Revenue increase
2. Employee feedback of customer satisfaction
3. Increase in sales price without losing customers
4. Customer retention rate - correct answer Customer retention rate
Identify which trait below about incremental budgeting is FALSE
1. Inputs or actives are determined by the budgeted outputs
2. It takes previous years' actual figure and add or subtract a certain percentage from it
to make the new year's budget
3. It can carry over mistakes or slack budgets from previous years
4. It is the most commonly used method of budgeting - correct answer Inputs or actives
are determined by the budgeted outputs
Identify which of the following is not a goal of the variance dashboard
1. Conveying a lot of information as quickly as possible
2. Using graphs in place of tables where appropriate
3. Presenting several different types of information all on one screen
4. A detailed written report - correct answer A detailed written report
Identify the cause of an unfavorable variance in profit
1. Actual labor cost is lower than budget
2. Actual sales volume is higher than budget
3. Actual sales price is higher than the budget
4. Actual material cost is higher than the budget - correct answer Actual material cost is
higher than the budget
What is the main argument of "Beyond Budgeting"?
1. There should be a shift from operational budgeting to cash budgeting
2. Firms today need to be more flexible and responsive to deal with unpredictable
change, hyper competition and increasingly fickle consumers
3. Traditional budgeting principles are too limited and should be increased to 12
principles
4. The traditional budgeting methods are too rigid and should be eliminated altogether -
correct answer Firms today need to be more flexible and responsive to deal with
unpredictable change, hyper competition and increasingly fickle consumers
Using the PEST analysis, which of the following should a company like Apple Inc. Worry
about the most?
1. Technological forecasting and trends
2. Economical forecasting and trends
3. Political forecasting and trends
4. Social forecasting and trends - correct answer Technological forecasting and trends
Which of the following is the best KPI for measuring customer satisfaction?
1. Revenue increase
2. Employee feedback of customer satisfaction
3. Increase in sales price without losing customers
4. Customer retention rate - correct answer Customer retention rate
