CH. 8.2 SB

Selling and Administrative Budget

In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the

Merchandise Purchases

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

merchandise purchases budget

The amount of goods to be purchased from suppliers during the period is shown on the

balance sheet

The annual master budget file includes the ________ from last year because it is needed for the schedule of expected cash collections.

financing

The cash budget includes four major sections: receipts, disbursements, the cash excess or deficiency, and

Ending Finished Goods Inventory

The cost of unsold units is computed on the

Cost of Unsold Units

The ending finished goods inventory budget computes the:

Direct Labor Budget

The number of working hours required to satisfy the production budget is shown on the

production budget

prepared right after the sales budget.

Production Budget

shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory

Cash Disbursements Section

The section on the cash budget that summarizes all cash payments that are planned for the budget period is the

balance sheet as of December 31, 2015

To prepare a budgeted balance sheet as of December 31, 2016, data is needed from the:

makes it easier to answer "what-if" questions

Using budget assumptions when preparing the master budget:

Manufacturing Overhead Budget

All costs of production other than direct materials and direct labor are shown on the

Selling and Administrative Budget

Budgeted expenses for areas other than manufacturing are shown on the

Budgeted Income Statement

Which of the following budgets shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

Direct Labor Budget

Working hours required to satisfy the production budget are shown on the

Direct Materials Budget

details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories

Direct Materials Budget

details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories