BUSN 278 Budgeting and Forecasting
Week 4 DQ 1
Explain what is meant by the time value of money, and discuss its relevance to the capital budgeting process.
Week 4 DQ 2
Discuss the complications related to creating a forecast and budget for a new business.
BUSN 278 Week 4 Midterm Exam
1.??(TCO 1) Why are budgets useful in the planning process? (Points : 5)
2.??(TCO 2) The qualitative forecasting method that individually questions a panel of experts is??_____. (Points : 5)
3.??(TCO 3) Which of the following is not used to evaluate the accuracy of regression results? (Points : 5)
4.??(TCO 4) Capital expenditures are incurred for all of the following reasons except _____. (Points : 5)
5.??(TCO 5) Priority budgeting that ranks activities is known as??_____.(Points : 5)
6.??(TCO 6) Which of the following ignores the time value of money? (Points : 5)
7. (TCO 1) There are several approaches that may be used to develop the budget. Managers typically prefer an approach known as participative budgeting. Discuss this form of budgeting and identify its advantages and disadvantages. (Points : 20)
8. (TCO 2) There are a variety of forecasting techniques that a company may use. Identify and discuss the four main qualitatative approaches, including their advantages and disadvantages. (Points : 20)
12. (TCO 6) Corn Doggy Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $262,000. In addition, Austin estimates that the new machine will increase the company???s annual net cash inflows by $40,300. The machine will have a 12-year useful life and no salvage value.