chapter 8 smartbook

Many of the schedules in a master budget are based on a variety of management estimates and assumptions. True false question.TrueFalse

TRUE

Which of the following is needed to prepare a sales budget? Multiple choice question. The budgeted number of units to be sold Desired ending inventory Beginning inventory of finished goods Desired ending inventory of raw materials

The budgeted number of units to be sold

Master budget schedules Blank______. Multiple select question. answer several key questions for a company may be prepared in any order are based on estimates and assumptions

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

Gathering feedback to ensure that the plan is being followed is referred to as ________________________

Controlling

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? Multiple choice question. Sales Production Cash Finished goods inventory

production

The cash budget uses information from several other budgets. Which of the following budgets is NOT used to prepare the cash budget? Multiple choice question. Production Selling and administrative Sales Direct labor

production

Both the production and selling and administrative expense budgets are prepared using information directly from the ________________ budget

sales

A detailed plan for the future that is usually expressed in formal quantitative terms is Blank______. Multiple choice question. the budget period a budget profit planning responsibility accounting

BUDGET

The final schedule of the master budget is the Blank______. Multiple choice question. budgeted income statement sales budget budgeted balance sheet cash budget

Budget balance sheet

Which of the following budgets are directly based on information from the sales budget? Multiple select question. Production budget Selling and administrative expense budget Direct labor budget Direct materials budget

Production budget Selling and administrative expense budget

Because all other parts of the budget depend on it, if the Blank______ budget is inaccurate, the rest of the budget will be inaccurate. Multiple choice question. production sales direct materials cash

SALES

The cash budget Blank______. Multiple choice question. uses information from the budgeted balance sheet and income statement is the first budget prepared in the master budget process is prepared near the end of the master budget process

is prepared near the end of the master budget process

An integrated business plan that formally lays out the company's goals is called the Blank______ budget. Multiple choice question. master sales self-imposed profit planning

master

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, static, or planning

Budgets Blank______. Multiple choice question. focus on what has happened in the past communicate management's plan throughout the organization primarily help managers with day-to-day emergencies

communicate management's plan throughout the organization

A budget is a detailed plan for the future that is usually expressed in formal qualitative terms. True false question.

false QUANTITATIVE

Budgets Blank______. Multiple select question. force managers to think about and plan for the future define goals and objectives that can serve as benchmarks for evaluating subsequent performance provide each department with the same amount of money to spend, so that all departments are treated fairly and the budgeting process can uncover potential bottlenecks before they occur 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 define goals and objectives that can serve as benchmarks for evaluating subsequent performance and the budgeting process can uncover potential bottlenecks before they occur coordinate the activities of the entire organization by integrating the plans of its various parts

The first step in the budgeting process is preparing the Blank______ budget. Multiple choice question. direct materials cash sales production

sales

n a manufacturing company, the budgets for manufacturing costs, including the direct materials budget, the direct labor budget, and the manufacturing overhead budget are all based on the _____________________ budget.

production