Accounting chapter 8 (exam 3)

ABC Company expects to sell 100,000 units of its primary product in January. Expected beginning and ending finished goods inventory for January are 20,000 and 45,000 units, respectively. How many units should ABC produce?

125,000

Which of the following is not considered an operating budget?

Cash budget.

Raya Company is calculating its expected cash receipts for the month of June. This should not include

Credit sales made during July.

Which of the following is not considered a direct benefit of budgeting?

Developing new product lines

Which of the following budgets is affected by the sales budget?

Direct labor budget. Cash receipts and payments budget. Selling and administrative budget.

Shasta Company plans to double its profits in five years. This is an example of a

Long-term objective

Budgets help companies

Meet short-term objectives. Meet long-term objectives.

Which of the following statements is true?

Most companies would benefit from budgeting

Which phases of the management process are impacted by budgeting?

Planning. Directing/leading. Controlling.

Which of the following budgets would be prepared earliest in a company's budgeting process?

Production budget.