36. CSO: 1B2b LOS: 1B2e
　　Which one of the following statements concerning approaches for the budget development process is correct?
　　a. The authoritative approach to budgeting discourages strict adherence to strategic organizational goals.
　　b. To prevent ambiguity, once departmental budgeted goals have been developed, they should remain fixed even if the sales forecast upon which they are based proves to be wrong in the middle of the fiscal year.
　　c. With the information technology available, the role of budgets as an organizational communication device has declined.
　　d. Since department managers have the most detailed knowledge about organizational operations, they should use this information as the building blocks of the operating budget.
　　37. CSO: 1B2b LOS: 1B2e
　　Which one of the following items would most likely cause the planning and budgeting system to fail? The lack of
　　a. historical financial data.
　　b. input from several levels of management.
　　c. top management support.
　　d. adherence to rigid budgets during the year.
　　38. CSO: 1B2b LOS: 1B2e
　　All of the following are disadvantages of authoritative budgeting as opposed to participatory budgeting, except that it
　　a. may result in a budget that is not possible to achieve.
　　b. may limit the acceptance of proposed goals and objectives.
　　c. reduces the communication between employees and management.
　　d. reduces the time required for budgeting.
　　39. CSO: 1B2d LOS: 1B2m
　　All of the following statements concerning standard costs are correct except that
　　a. time and motion studies are often used to determine standard costs.
　　b. standard costs are usually set for one year.
　　c. standard costs can be used in costing inventory accounts.
　　d. standard costs are usually stated in total, while budgeted costs are usually stated on a per-unit basis.
　　40. CSO: 1B2d LOS: 1B2o
　　One approach for developing standard costs incorporates communication, bargaining, and interaction among product line managers; the immediate supervisors for whom the standards are being developed; and the accountants and engineers before the standards are accepted by top management. This approach would best be characterized as a(n)
　　a. imposed approach.
　　b. authoritative approach.
　　c. engineering approach.
　　d. participative approach.