ACT 213 CH 8

What is listed in the receipts section of the cash budget?

All cash inflows, except from financing

Which budgets are needed to calculate unit product costs?

Direct materials budget, direct labor budget, manufacturing overhead budget

Planning is the process of gathering feedback to increase the likelihood that the objectives of the plan are attained.

FALSE

The 10 schedules in the master budget for a manufacturing company are designed to answer which of the following questions?

How much cash will we collect from our customers?, How much direct & indirect manufacturing cost will we incur?, What will our balance sheet look like at the end of the budget period?, How much money will we borrow and what will the interest owed?, What is the total cost that will be transferred from finished goods to COGS?

Which budget shoes all costs of production other than direct materials and direct labor?

Manufactoring overhead budget

The WHAT budget consists of a number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals.

Master Budget

In a manufacturing company, the WHAT 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

In a manufacturing company, which budget shows the number of units that must be produced to satisfy needs and to provide for the desired ending inventory?

Production budget

Which budget is prepared directly after the sales budget in a manufacturing company?

Production budget

The first step in the budgeting process is the preparation of the WHAT budget

Sales budget

Which budget is a detailed schedule showing the expected sales for the budget period?

Sales budget

6 advantages of budgeting:

communicate, planning, allocate, bottleneck

The cash WHAT section on the cash budget summarizes all cash payments that are planned for the budget period.

disbursements

The advantages of a self-imposed budget include:

it is more accurate or realistic, you are more committed/ motivated to achieve the budget, it promotes teamwork

Depreciation on manufacturing equipment is WHAT.. the manufacturing overhead budget to get the cash total for use in the cash budget:

subtracted from

What are the first 8 steps (in order) in preparing a Master Budget:

1. Sales budget 2. Production budget 3. Direct materials 4. Direct labor 5. MFG overhead 6. ending inventory 7. selling & administrative 8. Cash