Acc Chpt 9
The Paper Mill expects to sell 9,000 reams of paper in November and 12,000 in December for $5 each. What is the total sales revenue for the sales budget during October and November?
$45,000 November; $60,000 December
Which of the following answers describes the benefits of the financial budget?
A manager who uses this budget can compile the capital expenditure budget, the cash budget, and the budgeted balance sheet.
Which of the following is NOT true about credit card sales and budgets?
A sale is shown on the operating expense budget, two months after the sale.
Which of the following is TRUE about credit card sales and budgets?
A sale is shown on the sales budget, in the same month as the sale.
Which of the following is a benefit of budgeting which helps a manager motivate employees and evaluate performance?
Benchmarking
Which of the following is NOT a component of the direct labor budget?
Cost of goods sold
Which of the following is NOT a component of the operating budget of a service company?
Merchandise inventory
________ entails the planning and establishment of long-term goals which range years into the future.
Strategic planning
Which of the following is important to a manager at a merchandising company when preparing the master budget?
The length of time between sales and deposits
The starting point for creating the budget is ________.
actual or prior year budgeted data
The ________ merges the budgeted cash collections and cash payments to project the firm's ending cash position.
combined cash budget
A merchandising company uses a master budget which includes a ________.
cost of goods sold
A merchandising company uses a master budget which includes all of the following EXCEPT a(n) ________.
direct labor budget
Strategic planning ________.
entails the planning and establishment of long-term goals which extend years into the future
A manager can project the collection of cash and forecast an organization's budgeted balance sheet by using a(n) ________.
financial budget
The master budget ________.
is the comprehensive planning document for the entire organization
When using the INTERCEPT function in Excel, what data is required?
known or existing x-axis and y-axis values
Benchmarking ________.
may help a manager motivate employees and provide a measure to evaluate performance
The combined cash budget ________.
merges budgeted cash collections and cash payments to project the firm's ending cash position
Actual or prior year budgeted data is ________.
the starting point for creating the budget
Units Needed for Sales + Desired Ending Inventory - Units in Beginning Inventory is the formula to compute ________.
units to produce
The managerial accountant at Monumental Industries reported an upcoming sale of desks. Each desk requires .60 direct labor hours to produce. Monumental has a direct labor rate of $14 per direct labor hour to produce the product. The managerial accountant reported that the production budget indicates that the production schedule consists of 800 desks in January and 1,000 desks in February. What is the total direct labor budgeted cost together for January and February?
$15,120
The managerial accountant at Local Produce Services expects to collect 40% of its credit sales in the month after the sale and 60% two months after the sale. Assume credit sales in January were $200,000 and February sales were $100,000. What is the anticipated cash collection of credit sales in March from January and February sales?
$160,000 (January: 60% × $200,000 = $120,000 February: 40% × $100,000 = $40,000 $120,000 + $40,000 = $160,000)
Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge. What is the transaction fee Customer World must pay on this sale?
$6.20
Which of the following is NOT a component of the combined cash budget?
Depreciation as a cash expense
The computation for sales revenue is ________.
Expected Number of Unit Sales × Expected Sales Price per Unit
Expected Number of Unit Sales × Expected Sales Price per Unit = ________.
Expected Total Sales Revenue
Which Excel function will predict the point at which a regression line crosses the y-axis?
INTERCEPT
Which of the following is TRUE about a service company?
The operating budget of a service company has no merchandising inventory.
Which of the following is NOT important to a manager at a merchandising company when preparing the master budget?
The production budget
Which of the following is NOT an outcome of the combined cash budget?
Total liabilities and stockholders' equity
Which of the following represents the formula to compute the total units to produce in the production budget?
Units Needed for Sales + Desired Ending Inventory - Units in Beginning Inventory
