CH8 ACCT3030

Limitations of self-imposed budgeting include ______.

suboptimal budget recommendations budgetary slack

Borrowing money is required whenever ______.

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

Budgetary slack occurs when a manager submits a budget that is ______.

too easy to attain

The sales budget is a detailed schedule showing the expected sales for the budgeted period. t/f

true

The ending finished goods inventory budget computes the cost of ______ units.

unsold

Which of the following budgets shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

Budgeted income statement

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

create the budget with a budgeting assumption tab

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 cost of unsold units is computed on the ______ budget.

ending finished goods inventory

True or false: For most companies a single, annual cash budget is sufficient.

false

A company's planned net profit that serves as a benchmark against which subsequent company performance can be measured is shown on the budgeted___-

income statement

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

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

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

master budget

A company with adequate cash balances at the beginning and end of the year, ______.

may still have cash deficiency issues during the year

The amount of goods for resale to be acquired from suppliers during the period is shown on the__ budget

merchandise purchases

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

merchandise purchases

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

participative

Developing goals and preparing various budgets to achieve those goals is part of the__ process

planning

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__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 is used as the basis for creating the direct materials budget, the direct labor budget, and the manufacturing overhead budget?

production

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

production

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

sales

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

sales budget

To calculate total sales on the sales budget, multiply budgeted sales in units by ______.

sales price per unit

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

self-imposed

Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of ______.

self-imposed budgeting

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

selling & administrative

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

cash

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

budget

In large organizations, many smaller individual budgets submitted by department heads and other responsible people comprise the ______ budget.

S&A

Which of the following is needed to prepare a sales budget?

The budgeted number of units to be sold

Required borrowings on a cash budget is calculated by ______.

adding the desired ending cash balance to the amount of the cash deficiency

The receipts section of the cash budget lists ______.

all cash inflows, except from financing

Budgets ______.

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

Master budget schedules ______.

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

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

balance sheet

The annual master budget file includes the ______ from last year because it is needed for the schedule of expected cash collections.

balance sheet

To prepare a budgeted balance sheet as of December 31, 2020, data is needed from the ______ December 31, 2019.

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