Which of the following statements regarding the authoritarian style of budgeting is correct?

The budget is set by senior management.

Department managers have no influence over the budget targets.

Department managers are not consulted during the budget setting process.

All of the statements listed are correct.

2

The strategic planning process relates to:

shorter term planning (usually less than 1 year).

longer term planning (often 3 to 5 years).

shorter term planning (usually 1 to 3 months).

large entities only.

3

The difference between budgeted amounts and an entity’s actual results is called a:

control tool.

budget error.

variance.

excess.

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