true/false:

Smaller organisations do not need to prepare budgets since they are far less likely to experience cash flow problems compared to larger organisations.

Material flow cost accounting (MFCA) tends to consider impacts that cannot be measured and therefore incorporates a variety of externalities.

If managers think they are responsible for ensuring that resources are not adversely impacted by their operations, then they are accepting accountability for that resource.

The information collected for budgeting purposes need not satisfy the qualitative characteristics of relevance and reliability (or faithful representation), since budgetary information would not typically be made publicly available.

Life cycle analysis (LCA) is one important way in which managers can understand, and potentially measure and control, the significant economic, social and environmental impacts of their products and services.

Which of these statements is FALSE in relation to the potential for negative outcomes when using budgets?

Question 7 options:

1)

When setting targets, an awareness of potential behavioural impacts is necessary.

2)

Research suggests that when budgetary targets are used to assess managers, those managers might " particularly if they participate in the budgetary process " act to create some slack in the targets, thereby making them easier to achieve.

3)

Whenever particular performance indicators are used to reward managers, care needs to be taken to ensure that the managers are not distracted in a way that is harmful to the organisation, or to its stakeholders.

4)

None of these choices

Which of the following factors might bias a manager towards focussing on short-term performance?

Question 9 options:

1)

A long-term employment contract

2)

A bonus plan based on share-price movements over a four-year period

3)

A bonus plan based on six-monthly or yearly profit

4)

All of these choices

Which of the following is an example of a performance measure that would fall under the financial perspective of the Balanced Scorecard?

Question 10 options:

1)

Number of new products

2)

Total sales

3)

Market share

4)

None of these choices