Acct 202 CH 07
Which of the following budgets are directly based on information from the sales budget? Pick all that apply: DL budget DM budget Production budget Selling and administrative expense budget
Production budget Selling and administrative expense budget
The first step in the budgeting process is preparing the _____ budget. cash sales production direct materials
Sales
Which of the following budgets are needed to calculate unit product costs? Pick all that apply: manuf. overh. budget sell. & admin. budget DM budget DL budget Cash budget
manuf. overh. budget DM budget DL budget
A budget prepared with the full cooperation of management at all levels is a _____ budget. Pick ALL that apply: participative perpetual master self-imposed
participative self-imposed
Developing goals and preparing various budgets to achieve those goals is part of the _____ process.
planning
Developing goals and preparing various budgets to achieve those goals is part of: the budget period. control responsibility accounting planning
planning
In a manufacturing company, the _____ budget is prepared right after the sales budget.
production
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
Which of the following holds managers accountable for revenues and costs? self-imposed budget responsibility accounting budget committee budgeting
responsibility accounting
A manager who wants to submit a budget that is easy to attain will try to put budgetary _____ into his or her budget.
slack
A quantitative plan for acquiring and using resources over a specified time period is a(n) _____.
budget
Which of the following is not found in the financing section of the cash budget? interest cash deficiency borrowings repayments
cash deficiency
Budgets: Pick the one that you think it right... focus on what has happened in the past. primarily help managers w/ day-to-day emergencies. communicate management's plan throughout the organization.
communicate management's plan throughout the organization.
The cash budget includes 4 major sections: receipts, disbursements, the cash excess or deficiency, and _____.
financing
What is added to the variable selling and administrative expenses to get the total selling and administrative expenses? direct materials non-cash selling and administrative expenses merchandise purchases fixed selling and administrative expenses
fixed selling and administrative expenses
Budgets: Pick all that apply... force managers to think about and plan for the future. 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. provide each department w/ the same amt. of money to spend, so that all depts are treated fairly. define goals and objectives that can serve as benchmarks for evaluating subsequent performance.
force managers to think about and plan for the future. 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. define goals and objectives that can serve as benchmarks for evaluating subsequent performance.
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