ACC 202 Ch 8 Prework- BURGESS

Self imposed

A manager cannot complain that the budget was unrealistic and impossible to meet when a(n) _____- _____budget is in place.

Master

A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the _____ budget.

Manufacturing overhead

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

MO

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

d) Master

An integrated business plan that formally lays out the company's goals is called the ______ budget. a) Profit Planning b) Self- imposed c) Sales d) Master

Sales

Because all other parts of the budget depend on it, if the ______ budget is inaccurate, the rest of the budget will be inaccurate. a) Production b) Cash c) Sales d) DM

balance sheet

Because it is needed for the schedule of expected cash collections, the annual master budget file includes the _____ _____

Balance sheet

Because it is needed for the schedule of expected cash collections, the annual master budget file includes the _____ _____ from last year

d) S&A

Budgeted expenses for areas other than manufacturing are shown on the _____ budget a) MO b) Cash c) Ending FG Inventory d) S&A

b) communicate management's plan throughout the organization

Budgets _____ a) primarily help managers with day-to-day emergencies b) communicate management's plan throughout the organization c) focus on what has happened in the past

a) Planning; control

Budgets are used for two distinct purposes: ______ and ______. a) Planning; control b) Benchmarking; Integrating c) Advising; Consulting d) Executing; overseeing

c) beginning

A budgeted balance sheet is developed using data from the ______ of the budget period and data contained in the various schedules. a) average b) end c) beginning

b) the cash excess is greater than the minimum required cash balance

A company can consider making investments or repay outstanding principal and interest when ______ a) the cash excess is less than the minimum required cash balance b) the cash excess is greater than the minimum required cash balance c) the cash excess equals the minimum required cash balance d) there is a cash deficiency

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 _____ _____

a) a budget

A detailed plan for the future that is usually expressed in formal quantitative terms is ______. a) a budget b) profit planning c) responsibility accounting d) the budget period

budget

A detailed plan for the future that is usually expressed in formal quantitative terms is a _____

Control

Gathering feedback to ensure that the plan is being followed is referred to as _____

Direct materials

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

Direct materials

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

Production

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

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

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

d) DM

In a manufacturing company, the ______ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories a) Sales b) Production c) Merchandise purchases d) DM

b) 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 a) sales b) production c) Cash d) FG inventory

b) S&A

In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the ______ budget. a) MO b) S&A c) Cash d) Ending FG inventory

A and B

Master budget schedules ______. a) are based on estimates and assumptions b) answer several key questions for a company c) may be prepared in any order

d) participative

More accurate estimates and higher motivation are generally the result of using a(n) ______ budget. a) Perpetual b) Imposed c) Continuous d) participative

a) adding the desired ending cash balance to the amount of the cash deficiency

Required borrowings on a cash budget is calculated by ______. a) adding the desired ending cash balance to the amount of the cash deficiency b) subtracting the beginning cash balance from the amount of the cash deficiency c) subtracting the desired ending cash balance from the amount of cash excess d) adding the desired ending cash balance to the amount of cash excess

c,d

Select all Borrowing money is required whenever a) the cash excess is greater than the minimum required cash balance b) the cash excess equals the minimum required cash balance c) there is a cash deficiency d) the cash excess is less than the minimum required cash balance

a,b,c,e

Select all that apply Budgets ______. a) force managers to think about and plan for the future b) and the budgeting process can uncover potential bottlenecks before they occur c) define goals and objectives that can serve as benchmarks for evaluating subsequent performance d) provide each department with the same amount of money to spend, so that all departments are treated fairly e) coordinate the activities of the entire organization by integrating the plans of its various parts

merchandise purchases

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

c) Merchandising Purchases

The amount of goods to be acquired from suppliers during the period is shown on the _______ budget. a) DL b) Sales c) Merchandising Purchases d) MO

d) Balance sheet

The annual master budget file includes the ______ from last year because it is needed for the schedule of expected cash collections. a) income statement b) Sales Budget c) Cash budget d) Balance sheet

Financing

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

b) ending FG inventory

The cost of unsold units is computed on the _____ budget a) sales b) ending FG inventory c) MO d) production

b) unsold

The ending finished goods inventory budget computes the cost of ______ units. a) sold b) unsold

Sales Budget

The first step in the budgeting process is the preparation of the _____

Direct Labor

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

Disbursements

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

b) Sales Price per unit

To calculate total sales on the sales budget, multiply budgeted sales in units by ______. a) Budgeted Unit sales b) Sales Price per unit c) number of units

a) Balance sheet as of

To prepare a budgeted balance sheet as of December 31, 2020, data is needed from the _____ December 31, 2019. a) Balance sheet as of b) income statement for the year ended c) statement of cash flows for the year ended

False Control involves the steps taken my MGT to increase the likelihood that all parts of the organization are working to achieve the goals set down in the planning stage.

True or false: Control involves developing goals and preparing various budgets to achieve those goals.

True

True or false: Many of the schedules in a master budget are based on a variety of management estimates and assumptions.

c) makes it easier to answer "what-if" questions

Using budgeting assumptions when preparing the master budget, ______. a) involves adjusting data inputs within each master budget schedule b) increases the complexity of the process c) makes it easier to answer "what-if" questions

b) create the budget with a budgeting assumption tab

When creating an Excel budget and performing what-if analysis, it is generally easiest to ______. a) adjust data inputs within each master budget schedule b) create the budget with a budgeting assumption tab c) copy the master budget and make change to the copy only

b) create the budget with a budgeting assumption tab

When creating an Excel budget and performing what-if analysis, it is generally easiest to ______. a) copy the master budget and make change to the copy only b) create the budget with a budgeting assumption tab c) adjust data inputs within each master budget schedule

d) 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? a) Budgeted selling and administrative expenses b) Manufacturing overhead budget c) Budgeted balance sheet d) Budgeted income statement

a) The budgeted number of units to be sold

Which of the following is needed to prepare a sales budget? a) The budgeted number of units to be sold b) Beginning inventory of finished goods c) Desired ending inventory d) Desired ending inventory of raw materials

d) DL

Working hours required to satisfy the production budget are shown on the ______ budget. a) Merchandise purchases b) DM c) Cash d) DL