ACCA PM · Chapter 10 · Question 9 of 9
Hopwood identified three styles of using budget information to evaluate managers. Under which style is a manager judged mainly on the ability to meet the budget in the short term, with little regard to other measures?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Budget-constrained style
Explanation
In the budget-constrained style, meeting short-term budget targets is the main criterion, which can cause stress and manipulation of data. The profit-conscious style focuses on long-term effectiveness, and the non-accounting style places little emphasis on budget data. 'Participative' describes how budgets are set, not one of Hopwood's evaluation styles.
More Budgetary systems and types of budget MCQs
- Q2Under zero-based budgeting, what is a decision package?
- Q3For which of the following types of cost is zero-based budgeting most likely to be useful?
- Q4A company prepares a 12-month budget. At the end of each month, it adds a budget for the same month of the following year and revises the…
- Q5Which of the following is a principle of the 'beyond budgeting' model?
- Q6Which of the following is a recognised disadvantage of participative (bottom-up) budgeting?
