LearnSmarts Chapter 8
The final step in the master budgeting process is to prepare the:
budgeted balance sheet
The operating budgets feed directly into the ___ ___ budget which then feeds directly into the budgeted balance sheet.
cash budget
Short-term objectives:
need to be achieved in one year or less; are an important component of long-term objectives
The budgeted income statement is formed from the combined ___ budgets.
operating
The number of units that must be produced to satisfy sales needs and to provide for the desired ending inventory is shown on the ___ budget.
production
The direct materials budget directly relies on the:
production budget
The starting point of the planning process is management's ___ ___ or vision for the organization.
strategic plan
Under ___-___ budgeting, managers must justify their budget each year by starting from scratch.
zero-based
Which one of the following budgets is prepared first?
Sales budget
Which of the following is needed to prepare a sales budget?
The budgeted number of units to be sold