Cost Accounting Chapter 8

beginning

A budgeted balance sheet is developed using data from the Blank______ of the budget period and data contained in the various schedules.

the cash excess is greater than the minimum required cash balance

A company can consider making investments or repay outstanding principal and interest when

Income Statement

A company's planned net profit that serves as a benchmark against which subsequent company performance can be measured is shown on the budgeted

master budget

An integrated business plan that formally lays out the company's goals

sales

Because all other parts of the budget depend on it, if the Blank______ budget is inaccurate, the rest of the budget will be inaccurate.

False

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

Merhandise purchases

The amount of goods to be acquired from suppliers during the period is shown on the ______ budget

balance sheet

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

sales budget

The budget process begins with the preparation of the ______ budget

sales

The first step in the budgeting process is preparing the Blank______ budget.

Direct Labor

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

estimate the quantity of raw materials to be purchased

The purpose of preparing a direct materials budget is to

cash disbursements

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

Unit Product Cost

The value of the ending inventory is calculated by multiplying the number of units in ending inventory by the

balance sheet as of

To prepare a budgeted balance sheet as of December 31, 2020, data is needed from the ______ December 31, 2019.

The budgeted number of units to be sold

What is needed to prepare a sales budget?

Budgetory slack

When a manager creates a budget that is too easy to attain, ______ occurs.

Selling and administrative expense budget Production budget

Which budgets are directly based on information from the sales budget?

perpetual budget

a 12-month budget that rolls forward one month as the current month is completed

self-imposed or participative budget

a budget that is prepared with the full cooperation and participation of managers at all levels.

budget

a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period.

desired ending raw materials for the last period

in a direct materials budget, the desired ending raw materials inventory for the year is equal to

production budget

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

production

In a manufacturing company, which budget is used as the basis for creating the direct materials budget, the direct labor budget, and the manufacturing overhead budget?

selling and administrative

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

planning

involves developing objectives and preparing various budgets to achieve those objectives.

control

involves the steps taken by management to increase the likelihood that the objectives set down while planning are attained and that all parts of the organization are working together toward that goal.

receipts, disbursements, the cash excess or deficiency, and financing

4 sections of cash budget

Beginning inventory for the first quarter

For a production budget, the _____ is the beginning inventory for the year

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

suboptimal budget recommendations budgetary slack

Limitations of self-imposed budgeting include

participative

More accurate estimates and higher motivation are generally the result of using a(n) _____ budget.

True/ does not include

Predetermined OH rate does not include depreciation

avoid labor shortages

companies prepare direct labor budgets to

all cash inflows, except from financing

The receipts section of the cash budget lists