Accounting Test #3
Expenses are paid in the month incurred. if the company has budgeted to sell 8,000 blenders in October, how much is the total budgeted variable selling and administrative expenses for October?
101,600
Blake Co. has the following budgeted sales: January $160,000, Februar $240,000, and March $200,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:
212,000
Management's plans expressed in financial terms for specified future time period
Budget
A group responsible for coordinating the preparation of the budget
Budget committee
Which of the following is not an operating budget? Direct Labor, Sales, Production, or Cash?
Cash
A projection of anticipated cash flows
Cash budget
Company A is a manufacturer and Company B is a merchandiser. What is the difference in the budgets the two entities will prepare?
Company A will prepare a production budget, and Company B will prepare a merchandise purchases budget
An estimate of the quantity and cost of direct materials to be purchased
Direct materials budget
Budgets that indicate the cash resources needed for expected operations and planned capital expenditures.
Financial budgets
A selection of strategies to achieve long-term goals
Long-range planning
A set of interrelated budgets that constitute a plan of action for a specified time period
Master budget
Which of the following items would never appear on a cash budget? Office salaries expense, interest expense, depreciation expense, travel expense
Office salaries expense
A projection of production requirements to meet expected sales
Production budget
An estimate of expected sales for the budget period
Sales budget
The projection of potential sales for the industry and the company's expected share of such sales
Sales forecast
An overly optimistic sales budget may result in...
excessive inventories
The most common budget period is
one year
