Consider the Following Statements About Budget Administration

question 56

Multiple Choice

Consider the following statements about budget administration.
i. Regardless of size, the budgeting process in all organisations must be a formal process.
ii. The budget manual is prepared to communicate budget procedures and deadlines to employees throughout the organisation.
iii. Good internal control procedures require that the manager responsible for managing the budget process be an individual other than the chief accountant.
Which statement/s is/are true?

• A) i
• B) ii
• C) iii
• D) i and iii

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Definitions:

Ratified

An action making an agreement officially valid after all parties involved have given their formal approval.

Voidable

A term used to describe a legal agreement or transaction that can be validated or invalidated at the discretion of one of the parties involved.

Overcharged

A situation where an individual is billed more than the agreed price or fair value for goods or services.

Reasonable Value

The fair or market value of a service or item, taking into consideration its quality, utility, and the prevailing conditions.