Accounting Exam III
Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. Group starts
T
Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.
T
The labor efficiency variance is labeled favorable (F) if the actual hours used is less than the standard hours allowed for the actual output.
T
The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.
T
The selling and administrative budget is typically prepared before the cash budget.
T
Budgets are used for the distinct purposes of planning and profit.
F
The disbursements section of a cash budget consists of all cash payments for the period except cash payments for dividends.
F
control involves developing goals and preparing various budgets to achieve those goals
F
Production Budget
sales budget + the desired ending inv.