Author Question: Which of the following is a reason why budgets in multinational companies are not used to evaluate ... (Read 28 times)

Zoey63294 · **on:** Mar 6, 2021

Question 1

When the operating budget is used as a control device, managers are less likely to be motivated to budget higher sales than actually anticipated.
◦ true
◦ false

Question 2

Which of the following is a reason why budgets in multinational companies are not used to evaluate the firm's performance relative to its budgets?
◦ Evaluations based on budgets can be meaningless due to factors such as exchange rate risk and other volatility.
◦ Evaluations based on budgets are not possible because of cultural differences in the budgeting approach.
◦ Evaluations based on relative regional performance are considered more meaningful as compared to evaluations against budgets.
◦ Evaluations based on budgets are harder when managers use sophisticated techniques to minimize foreign currency exposure.

Beatricemm · **Reply #1 on:** Mar 6, 2021

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