In a company with different business units, individual managers make decisions by changing various assumptions of its budget in order to determine how the modifications would affect the operational and financial results. This is an example of O A. responsibility accounting O B. zero - based budgeting OC. financial statement analysis O D. sensitivity analysis

In a company with different business units, individual managers make decisions by changing various assumptions of its budget in order to determine how the modifications would affect the operational and financial results. This is an example of O A. responsibility accounting O B. zero - based budgeting OC. financial statement analysis O D. sensitivity analysis

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 3R

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Which of the following statements are TRUE? I. Responsibility accounting attempts to assign blame for problems to a specific manager.II. One benefit of a budget is that it helps managers gather relevant information for improving future performance.III. Challenging budgets tend to motivate improved performance.IV. Controllability may be difficult to pinpoint because some costs are the result of the market, not the manager.