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Which of the following is true regarding budgeting and human behavior?


A)The budgeting process has absolutely no effect on the attitudes of employees.


B)The budget can be used to create a positive effect on employees' attitudes, or it can also create a


negative effect if not properly applied.


C)It does not affect general employees because only those in the accounting department should be involved.


D)All of the above.


E)None of the above.





Which of the following statements is/are not true?


A)B and C


B)Flexible budget and variable budget are synonymous terms.


C) Fixed budget and static budget are synonymous terms.


D)C and E


E)Quantity variance and price variance are synonymous terms.

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The answer to both is B. For the first question, the reasoning behind this is when a new tighter budget is applied at a workplace, everyone begins to worry about the cuts that are coming down the pike. For the second question, Flexible and variable both mean the same thing, and therefore are synonymous. Quantity variance means there are differing amounts of quantity; price variance means changing prices; therefore theses terms are not synonymous at all.
Reply:I would say B to the first one, it definetly does make an impact on everyone in the business.





E to the second one, quantity and price are definitely different terms, different things.