8b

The direct labor budget is based directly on the Blank______ budget. Multiple choice question. raw materials production sales manufacturing overhead

production

Which of the following budgets shows the company's planned profit? Multiple choice question. Manufacturing overhead budget Budgeted balance sheet Budgeted selling and administrative expenses Budgeted income statement

Budgeted income statement NOT: Manufacturing overhead budget Reason: The manufacturing overhead budget lists all costs of production other than direct materials and direct labour. Budgeted balance sheet Reason: The budgeted balance sheet would show assets, liabilities and equity, not planned profit or performance. Budgeted selling and administrative expenses Reason: A budgeted selling and administrative expense budget would only show these types of expenses, not planned profit.

Which of the following is NOT included on the sales budget? Multiple choice question. Expected cash collections Selling price per unit Budgeted number of units to be sold Desired ending inventory of units

Desired ending inventory of units

Select all that apply Which of the following budgets are needed to calculate unit product costs? Multiple select question. Direct labor Selling and administrative Direct materials Cash Manufacturing overhead

Direct labor Direct materials Manufacturing overhead NOT: Selling and administrative Reason: The calculation of unit product cost requires information about direct materials, direct labor and manufacturing overhead. Cash Reason: The calculation of unit product cost requires information about direct materials, direct labor and manufacturing overhead.

The receipts section of the cash budget lists Blank______. Multiple choice question. total credit sales total sales for the period all cash inflows except borrowings all cash inflows

all cash inflows except borrowings NOT: total credit sales Reason: Credit sales would not be included unless cash were collected from them in the same period. total sales for the period Reason: Only sales where cash was collected would be included. all cash inflows Reason: Any cash inflows from financing would be in the financing section of the cash budget, not the receipts section.

Because it is needed for the schedule of expected cash collections, and the cash budget the annual master budget file generally starts with the beginning _____________________ __________________.

balance sheet

The first tab included in the master budget file is generally a(n) Blank______ because it is needed for the schedule of expected cash collections. Multiple choice question. balance sheet income statement cash budget sales budget

balance sheet

A budgeted balance sheet is developed using data from the Blank______ of the budget period and data contained in the various schedules. Multiple choice question. beginning end average

beginning

The receipts, disbursements, excess or deficiency, and financing section are all parts of the Blank______ budget. Multiple choice question. production cash sales selling and administrative expense

cash

The first line of a merchandise purchases budget expressed in dollars is budgeted Blank______. Multiple choice question. units to produce unit sales cost of goods sold sales in dollars

cost of goods sold

When creating an Excel budget and performing what-if analysis, it is generally easiest to Blank______. Multiple choice question. adjust data inputs within each master budget schedule copy the master budget and make change to the copy only create the budget with a budgeting assumption tab

create the budget with a budgeting assumption tab

Working hours required to satisfy the production budget are shown on the Blank______ budget. Multiple choice question. direct materials direct labor cash merchandise purchases

direct labor NOT: direct materials Reason: A direct materials budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories. cash Reason: The cash budget shows the inflows and outflows of cash. merchandise purchases Reason: A merchandise purchases budget shows the amount of goods to be purchased from suppliers during the period.

In a manufacturing company, the ______________________ _________________ budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.

direct materials

In a manufacturing company, the Blank______ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories Multiple choice question. merchandise purchases sales production direct materials

direct materials NOT: merchandise purchases Reason: A merchandise purchases budget shows the amount of goods to be purchased from suppliers during the period. sales Reason: A sales budget is a detailed schedule showing the expected sales for the budgeted period. production Reason: The production budget lists the number of units that must be produced to satisfy sales needs and to provide for the desired ending inventory.

The section on the cash budget that summarizes all cash payments except principal and interest repayments is the cash _____________ section.

disbursement

The budgeted income statement does not contain data from the Blank______. Multiple choice question. sales budget beginning balance sheet ending balance sheet cash budget

ending balance sheet

Select all that apply The selling and administrative expense budget Blank______. Multiple select question. estimates nonmanufacturing expenses is divided into variable and fixed components begins with budgeted quarterly unit production excludes all noncash expenses

estimates nonmanufacturing expenses is divided into variable and fixed components NOT: begins with budgeted quarterly unit production incorrect Reason: It begins with budgeted quarterly unit sales. excludes all noncash expenses Reason: Noncash expenses are included on the budget, and deducted to compute cash disbursements.

Using budgeting assumptions when preparing the master budget, Blank______. Multiple choice question. makes it easier to answer "what-if" questions increases the complexity of the process involves adjusting data inputs within each master budget schedule

makes it easier to answer "what-if" questions NOT: involves adjusting data inputs within each master budget schedule Reason: Using budgeting assumptions prevents this.

The calculation of unit product cost requires information from the Blank______ budget Multiple choice question. cash manufacturing overhead selling and administrative ending finished goods inventory

manufacturing overhead NOT: cash Reason: The calculation of unit product cost requires information about direct materials, direct labor and manufacturing overhead. selling and administrative Reason: The calculation of unit product cost requires information about direct materials, direct labor and manufacturing overhead. ending finished goods inventory Reason: The calculation of unit product cost requires information about direct materials, direct labor and manufacturing overhead.

All costs of production other than direct materials and direct labor are shown on the _____________ ______________ budget.

manufacturing overhead NOT: ending finished goods inventory Reason: The ending finished goods inventory budget computes the cost of unsold units. cash Reason: The cash budget shows the inflows and outflows of cash. merchandise purchases incorrect Reason: A merchandise purchases budget shows the amount of goods to be purchased from suppliers during the period.

The amount of goods to be acquired from suppliers during the period is shown on the Blank______ budget. Multiple choice question. manufacturing overhead direct labor sales merchandise purchases

merchandise purchases NOT: manufacturing overhead Reason: The manufacturing overhead budget lists all costs of production other than direct materials and direct labor. direct labor Reason: The direct labor budget shows the number of hours needed to satisfy the production budget. sales Reason: The sales budget is a detailed schedule showing the expected sales for the budgeted period.

The first line of the direct labor budget consists of the budgeted units expected to be Blank______ during the period. Multiple choice question. sold produced

produced NOT: sold incorrect Reason: Labor requirements are based on production not sales.

In a manufacturing company, _________________ the budget is prepared right after the sales budget.

production

In a manufacturing company, the ___________________________ budget is prepared right after the sales budget.

production

Budgeted expenses for areas other than manufacturing are shown on the Blank______ budget. Multiple choice question. ending finished goods inventory selling and administrative manufacturing overhead cash

selling and administrative NOT: ending finished goods inventory Reason: The ending finished goods inventory budget calculates cost of unsold units. manufacturing overhead Reason: The manufacturing overhead budget lists all costs of production other than direct materials and direct labor. cash Reason: The cash budget shows the inflows and outflows of cash.