ACC 216 Chapter 8

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Which of the following budgets shows the company's planned profit?

Budgeted income statement

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

True

The first line of a merchandise purchases budget expressed in dollars is budgeted ______.

cost of goods sold

When creating an Excel budget and performing what-if analysis, it is generally easiest to ______.

create the budget with a budgeting assumption tab

Using budgeting assumptions when preparing the master budget, ______.

makes it easier to answer "what-if" questions

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

manufacturing overhead

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

manufacturing overhead

The calculation of unit product cost requires information from the ______ budget

manufacturing overhead

Select all that apply Involving lower-level managers increases ______ in the budgeting process.

motivation accuracy accountability

A budget that is prepared with the full cooperation of managers at all levels is a self-imposed or budget

participative

Budgets are used for two distinct purposes: ______ and ______.

planning; control

The first line of the direct labor budget consists of the budgeted units expected to be ______ during the period.

produced

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.

production

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

production

In a manufacturing company, the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget are all based on the budget.

production

The direct labor budget is based directly on the ______ budget.

production

The first step in the budgeting process is preparing the ______ budget.

sales

Budgeted expenses for areas other than manufacturing are shown on the ______ budget.

selling and administrative

A company can repay outstanding principal and interest when ______.

the cash excess is greater than the minimum required cash balance

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

Because all other parts of the budget depend on it, if the ______ budget is inaccurate, the rest of the budget will be inaccurate.

sales

Select all that apply Borrowing money is required whenever ______.

there is a cash deficiency the cash excess is less than the minimum required cash balance

The receipts, disbursements, excess or deficiency, and financing section are all parts of the ______ budget.

cash

S&P Enterprises has scheduled direct material purchases of $100,000 in January, $130,000 in February and $150,000 in March. The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase. Calculate the expected cash disbursements for the month of February.

$122,500

S&P Enterprises has scheduled direct material purchases of $120,000 in April, $140,000 in May and $160,000 in June. The company pays for 75% of its purchases in the month of purchase and 25% the month after the purchase. Calculate the expected cash disbursements for the month of May.

$135,000

Madison Corporation's expected beginning cash balance is $35,000. Cash collections are budgeted at $50,000 and cash disbursements are estimated to be $80,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $10,000. Calculate the expected ending cash balance for the month.

$25,000

Carter Production, Inc.'s required production for the first six month of the year is as follows. Month Required Production January 50,000 February 70,000 March 85,000 April 105,000 May 110,000 June 120,000 Each unit requires two pounds of material. Given a desired ending inventory of 20% of next month's production needs, the pounds of material to be purchased in February is ______.

146,000

Madison Corporation's expected beginning cash balance is $22,000. Cash collections are budgeted at $60,000 and cash disbursements are estimated to be $75,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $5,000. Required borrowings for the period equal $ .

15,000

On the cash budget, what is subtracted from total cash available to find the cash excess or deficiency?

Cash disbursements

Which of the following is NOT included on the sales budget?

Desired ending inventory of units

Select all that apply Which of the following budgets are needed to calculate unit product costs?

Direct labor Manufacturing overhead Direct materials

Most companies rely solely on self-imposed budgeting when creating budgets.

False

Total sales for the year reported on the Sales Budget will always be equal to expected cash collections for the year.

False

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?

Production

What is usually the major source of receipts in the receipts section of the cash budget?

Sales

A detailed plan for the future that is usually expressed in formal quantitative terms is ______.

a budget

Select all that apply Master budget schedules ______.

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

Budgets ______.

communicate management's plan throughout the organization

Because it is needed for the schedule of expected cash collections, and the cash budget the annual master budget file generally starts with the beginning .

balance sheet

The first tab included in the master budget file is generally a(n) ______ because it is needed for the schedule of expected cash collections.

balance sheet

To prepare a budgeted balance sheet as of December 31, 20x4, data is needed from the ______ December 31, 20x3.

balance sheet as of

A budgeted balance sheet is developed using data from the ______ of the budget period and data contained in the various schedules.

beginning

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

budget

When a manager creates a budget that is too easy to attain, ______ occurs.

budgetary slack

Select all that apply Limitations of self-imposed budgeting include ______.

budgetary slack suboptimal budget recommendations

Select all that apply Budgets ______.

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 encourage managers to think about and plan for the future and the budgeting process can uncover potential bottlenecks before they occur

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

direct labor

Working hours required to satisfy the production budget are shown on the ______ budget.

direct labor

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

direct materials

The section on the cash budget that summarizes all cash payments except principal and interest repayments is the cash section.

disbursements

The budgeted income statement does not contain data from the ______.

ending balance sheet

Carter Production, Inc.'s required production for the first six month of the year is as follows. Month Required Production January 50,000 February 70,000 March 85,000 April 105,000 May 110,000 June 120,000 Each unit requires two pounds of material. Given a desired ending inventory of 20% of next month's production needs, the pounds of material to be purchased in April is ______.

212,000

Developing goals and preparing various budgets to achieve those goals is part of ______,

planning

More accurate estimates are generally the result of having profit targets set by ______.

lower-level managers

The amount of goods to be acquired from suppliers during the period is shown on the ______ budget.

merchandise purchases

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

Select all that apply The selling and administrative expense budget ______.

estimates nonmanufacturing expenses is divided into variable and fixed components

An integrated business plan that formally lays out the company's goals is called the ______ budget.

master


संबंधित स्टडी सेट्स

US History II-Issues Quiz Review

View Set

Week 8 Day 1: Selective Attention and Aging.

View Set

spinal cord and spinal nerves, Chapter 12 Spinal cord and spinal nerves

View Set