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