Acct chapter 8
Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget?
The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead.
Which of the following statements is true? 1. The master budget consists of a number of separate but interdependent budgets. 2. The production budget is typically prepared before the direct materials budget. 3. The selling and administrative budget is typically prepared before the cash budget.
all of the statements are true
Which of the following statements is true? 1. 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. 2. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.
both statements are true
Which of the following statements is true? 1. In the manufacturing overhead budget, the non-cash charges (such as depreciation) are deducted from the total budgeted manufacturing overhead to determine the expected cash disbursements for manufacturing overhead. 2. The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.
both statements are true
Which of the following statements is true? 1. The direct labor budget begins with the required production in units from the production budget. 2. The direct labor budget shows the direct labor-hours required to satisfy the production budget.
both statements are true
Which of the following statements is true? 1. A benefit from budgeting is that it forces managers to think about and plan for the future. 2. One of the weaknesses of budgets is that they are of little value in uncovering potential bottlenecks. 3. One disadvantage of budgeting is that budgeting makes it more difficult to coordinate the plans and activities of departmental managers.
statement 1
Which of the following statements is true? 1. The budgeted income statement is typically prepared before the budgeted balance sheet. 2. The cash budget is the starting point in preparing the master budget. 3. The production budget is typically prepared prior to the sales budget.
statement 1
Which of the following statements is true? 1. In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period. 2. In the merchandise purchases budget, the required purchases (in units) for a period can be determined by subtracting the beginning merchandise inventory (in units) from the budgeted sales (in units) and desired ending merchandise inventory (in units). 3. When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased.
statement 2
Which of the following statements is true? 1. The selling and administrative expense budget lists all costs of production other than direct materials and direct labor. 2. The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. 3. The disbursements section of a cash budget consists of all cash payments for the period except cash payments for dividends.
statement 2
Which of the following statements is true? 1. Budgets are used for the distinct purposes of planning and profit. 2. Control involves developing goals and preparing various budgets to achieve those goals. 3. A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed.
statement 3
The usual starting point for a master budget is:
the sales forecast or sales budget.
