AVSC 3320 Reading Review 10.1

The budgeted income statement is one of the minor schedules in the budget process

False

Which section of the cash budget details the borrowings and repayments projected to take place during the budget period?

Financing

Which 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 budget

Which of the following is constructed by multiplying budgeted unit sales by the selling price?

Sales budget

Which of the following is a characteristic of the most successful budget programs?

Active participation by managers in preparing their own budgets

Which of the following is developed using data from the balance sheet from the beginning of the budget period and data contained in various schedules?

Budgeted balance sheet

What type of budget shows how cash resources will be acquired and used?

Cash budget

Which of the following details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories?

Direct materials budget

Where is the cost of unsold units computed?

Ending finished goods inventory

If the sales budget is inaccurate, the rest of the budget will be inaccurate.

True