In the Control Phase of Budgeting It Is Not Necessary

question 36

Multiple Choice

In the control phase of budgeting it is not necessary to:

• A) investigate all variances.
• B) decide on management action.
• C) provide timely information to management.
• D) compare actual performance with budget estimates.

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Definitions:

Written Down

A term referring to an asset that has been depreciated or devalued on the financial statements.

Carrying Value

The amount an asset is valued at on a balance sheet, subtracting depreciation and amortization.

Value Recovers

The process by which the market value of an asset increases after a period of decline.

Double Declining Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.