ACCT 2302 Chapter 9 DSM

a line of credit is

a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note

what describes the benefits of the financial budget?

a manager who uses this budget can compile the capital expenditure budget, the cash budget, and the budgeted balance sheet

which of the following is NOT true about credit card sales and budgets?

a sale is shown on the operating expense budget, two months after the sale

the starting point for creating the budget is what?

actual or prior year budgeted data

volume

amount of space occupied by an object

which of the following is a benefit of budgeting that helps a manager motivate employees and evaluate performance?

benchmarking

the __________________ merges the budgeted cash collections and cash payments to project the firm's ending cash position

combined cash budget

which of the following budgets is the comprehensive planning document for the entire organization?

comprehensive budget

a merchandising company uses a comprehensive budget, which includes a

cost of goods sold

which of the following is NOT a component of the direct labor budget?

cost of goods sold

which of the following is NOT a component of the combined cash budget?

depreciation as a cash expense

rolling budget

ensures the effective annual business operations for a 12-year period

strategic planning

entails the planning and establishment of long-term goals which extend years into the future

veracity

filled with truth and accuracy

what extends the trendline past the highest observation on the x-axis?

forecast forward

planning

helps managers to direct the daily business operations

coordination and communication

helps the manager coordinate activities with other individuals and groups at the workplace

which excel function will predict the point at which a regression line crosses the y-axis?

intercept

safety stock

inventory kept on hand to account for increases in consumer demand

when using the intercept function in excel, what data is required?

known or existing x-axis and y-axis values

benchmarking

may help a manager motivate employees and provide a measure to evaluate performance

capital expenditure budgets

reveal a manager's intent to invest in new property, plant, or equipment

vulnerability

susceptibility or tendency to develop a disorder

which of the following is important to a manager at a merchandising company when preparing the comprehensive budget?

the length of time between sales and deposits

which of the following is NOT important to a manager at a merchandising company when preparing the comprehensive budget?

the production budget

formula to compute the total units to produce in the production budget

units needed for sales + desired ending inventory -units in beginning inventory

units to produce formula

units needed for sales +desired ending inventory -units in beginning inventory

formula to compute the direct labor budget (total direct labor cost)

units to be produced x direct labor per unit x direct labor cost per hour

which of the six V's refers to the fact that the data can range from structured numeric data to unstructured data?

variety

the six V's

volume, velocity, variety, veracity, value, and vulnerability