ACCT 201 B - Connect chp. 5 reading
T/F: for most companies a single, annual cash budget is sufficient
False
what is listed in the receipts section of the cash budget?
all cash flows, except from financing
a budgeted balance sheet is developed using data from the ______ of the budget period and data contained in the various schedules
beginning
When preparing a direct materials purchase budget, which if the following is needed to calculate the raw materials to be purchased?
beginning inventory of raw materials ; raw materials required per unit
The purpose of a(n) _______ is to motivate people and coordinate their efforts.
budget
what budget shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?
budgeted income statement
collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period equals expected _______ collections
cash
what consists of collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period
cash collections
a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed is called a(n) ________ or perpetual budget
continuous
gathering feedback to ensure that the plan is being followed is referred to _________.
control
the ending finished goods inventory budget computes the:
cost of unsold units
the most common significant noncash manufacturing overhead cost in most companies is _________
depreciation
the most common significant noncash manufacturing overhead cost in most companies is _________.
depreciation
the direct labor hours required to satisfy the production budget is shown on the _______ _______ budget
direct labor
what budgets are needed to calculate unit product costs?
direct labor budget ; direct materials budget ; manufacturing overhead budget
In a manufacturing company, which budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories?
direct materials budget
To calculate raw materials to be purchased on the direct materials budget, add the desired _______ inventory of raw materials to the raw materials needed based on the ________ budget and ________ the beginning inventory of raw materials to arrive at raw materials to be purchased.
ending ; production ; deduct
what is added to the variable selling & admin expenses to get the total selling & admin expenses?
fixed selling & admin expenses
the desired ending raw materials inventory for the year is the same as the desired ending inventory for the ______ quarter
fourth
when a company does not use self-imposed budgeting, top managers initiate the budgeting process by issuing target profits and direct ______-level managers to prepare budgets that meet those targets.
lower
all costs of production other than direct materials and direct labor are shown on the _______ ________ budget
manufacturing overhead
A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals is the definition of the _________ budget
master
the amount of goods for resale to be purchased from suppliers during the period is shown on the _______ ______ budget
merchandise purchasing
operating budgets generally cover a _______ period
one-year
A budget prepared with the full cooperation of management at all levels is a _________ budget
participative or self-imposed
developing goals and preparing various budgets to achieve those goals is part of the _______ process.
planning
A manager who wants to submit a budget that is easy to attain will try to put budgetary _______ into his or her budget.
slack
a plan for acquiring and using resources over a specified period of time is referred to as:
the budget
True or false: A manager is not necessarily penalized if actual results do not measure up to the budgeted goals
true
what budgets are directly influenced by the sales budget?
selling & admin expense budget production budget
the budget that shows the budgeted expenses for areas other than manufacturing is the ________ and ______ expense budget
selling ; administrative
the purpose of a budget should be to:
1. coordinate efforts 2. motivate people 3. establish goals
developing goals for the budget is ________, and ________ involves steps taken to ensure that steps towards meeting the goal are being followed
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 produced to satisfy sales needs and to provide for the desired ending inventory.
production
In a manufacturing company, the __________ budget is used to determine the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget
production
what holds managers accountable for revenues and costs?
responsibility accounting
the first step in the budgeting process is the preparation of the _______ budget
sales
what is usually the major source of receipts in the receipts section of the cash budget?
sales
a manager who is unable to meet a budget that has been imposed from above can always say that the budget was unrealistic and impossible to meet. with a(n) _____-imposed budget, this excuse is not available.
self