Chapter 8: Master Budgeting

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

balance; sheet

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

master

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

participative

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

self; imposed

Master budget schedules Blank______. Multiple select questions. - are based on estimates and assumptions - may be prepared in any order - answer several key questions for a company

- are based on estimates and assumptions - answer several key questions for a company

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

- coordinate the activities of the entire organization by integrating the plans of its various parts - and the budgeting process can uncover potential bottlenecks before they occur - encourage managers to think about and plan for the future - define goals and objectives that can serve as benchmarks for evaluating subsequent performance

A detailed plan for the future that is usually expressed in formal quantitative terms is a(n) ______________.

Budget

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

False

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

True

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

a) a budget

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

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

Budgets are used for two distinct purposes: Blank______ and Blank______. a) planning; control b) benchmarking; integrating c) advising; consulting d) executing; overseeing

a) planning; control

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

c) communicate management's plan throughout the organization

To calculate total sales on the sales budget, multiply budgeted sales in units by Blank______. a) budgeted unit sales b) number of units c) sales price per unit

c) sales price per unit