ACCT 201 B - Connect chp. 5 reading

T/F: for most companies a single, annual cash budget is sufficient

False

what is listed in the receipts section of the cash budget?

all cash flows, except from financing

a budgeted balance sheet is developed using data from the ______ of the budget period and data contained in the various schedules

beginning

When preparing a direct materials purchase budget, which if the following is needed to calculate the raw materials to be purchased?

beginning inventory of raw materials ; raw materials required per unit

The purpose of a(n) _______ is to motivate people and coordinate their efforts.

budget

what budget shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

budgeted income statement

collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period equals expected _______ collections

cash

what consists of collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period

cash collections

a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed is called a(n) ________ or perpetual budget

continuous

gathering feedback to ensure that the plan is being followed is referred to _________.

control

the ending finished goods inventory budget computes the:

cost of unsold units

the most common significant noncash manufacturing overhead cost in most companies is _________

depreciation

the most common significant noncash manufacturing overhead cost in most companies is _________.

depreciation

the direct labor hours required to satisfy the production budget is shown on the _______ _______ budget

direct labor

what budgets are needed to calculate unit product costs?

direct labor budget ; direct materials budget ; manufacturing overhead budget

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

direct materials budget

To calculate raw materials to be purchased on the direct materials budget, add the desired _______ inventory of raw materials to the raw materials needed based on the ________ budget and ________ the beginning inventory of raw materials to arrive at raw materials to be purchased.

ending ; production ; deduct

what is added to the variable selling & admin expenses to get the total selling & admin expenses?

fixed selling & admin expenses

the desired ending raw materials inventory for the year is the same as the desired ending inventory for the ______ quarter

fourth

when a company does not use self-imposed budgeting, top managers initiate the budgeting process by issuing target profits and direct ______-level managers to prepare budgets that meet those targets.

lower

all costs of production other than direct materials and direct labor are shown on the _______ ________ budget

manufacturing overhead

A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals is the definition of the _________ budget

master

the amount of goods for resale to be purchased from suppliers during the period is shown on the _______ ______ budget

merchandise purchasing

operating budgets generally cover a _______ period

one-year

A budget prepared with the full cooperation of management at all levels is a _________ budget

participative or self-imposed

developing goals and preparing various budgets to achieve those goals is part of the _______ process.

planning

A manager who wants to submit a budget that is easy to attain will try to put budgetary _______ into his or her budget.

slack

a plan for acquiring and using resources over a specified period of time is referred to as:

the budget

True or false: A manager is not necessarily penalized if actual results do not measure up to the budgeted goals

true

what budgets are directly influenced by the sales budget?

selling & admin expense budget production budget

the budget that shows the budgeted expenses for areas other than manufacturing is the ________ and ______ expense budget

selling ; administrative

the purpose of a budget should be to:

1. coordinate efforts 2. motivate people 3. establish goals

developing goals for the budget is ________, and ________ involves steps taken to ensure that steps towards meeting the goal are being followed

planning ; control

the first line of the direct labor budget consists of the budgeted units expected to be _______ during the period.

produced

In a manufacturing company, the ______ budget shows the number of units that must be produced to satisfy sales needs and to provide for the desired ending inventory.

production

In a manufacturing company, the __________ budget is used to determine the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget

production

what holds managers accountable for revenues and costs?

responsibility accounting

the first step in the budgeting process is the preparation of the _______ budget

sales

what is usually the major source of receipts in the receipts section of the cash budget?

sales

a manager who is unable to meet a budget that has been imposed from above can always say that the budget was unrealistic and impossible to meet. with a(n) _____-imposed budget, this excuse is not available.

self