ACCT 2302 Chapter 9 DSM
a line of credit is
a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note
what 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
the starting point for creating the budget is what?
actual or prior year budgeted data
volume
amount of space occupied by an object
which of the following is a benefit of budgeting that helps a manager motivate employees and evaluate performance?
benchmarking
the __________________ merges the budgeted cash collections and cash payments to project the firm's ending cash position
combined cash budget
which of the following budgets is the comprehensive planning document for the entire organization?
comprehensive budget
a merchandising company uses a comprehensive budget, which includes a
cost of goods sold
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 combined cash budget?
depreciation as a cash expense
rolling budget
ensures the effective annual business operations for a 12-year period
strategic planning
entails the planning and establishment of long-term goals which extend years into the future
veracity
filled with truth and accuracy
what extends the trendline past the highest observation on the x-axis?
forecast forward
planning
helps managers to direct the daily business operations
coordination and communication
helps the manager coordinate activities with other individuals and groups at the workplace
which excel function will predict the point at which a regression line crosses the y-axis?
intercept
safety stock
inventory kept on hand to account for increases in consumer demand
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
capital expenditure budgets
reveal a manager's intent to invest in new property, plant, or equipment
vulnerability
susceptibility or tendency to develop a disorder
which of the following is important to a manager at a merchandising company when preparing the comprehensive budget?
the length of time between sales and deposits
which of the following is NOT important to a manager at a merchandising company when preparing the comprehensive budget?
the production budget
formula to compute the total units to produce in the production budget
units needed for sales + desired ending inventory -units in beginning inventory
units to produce formula
units needed for sales +desired ending inventory -units in beginning inventory
formula to compute the direct labor budget (total direct labor cost)
units to be produced x direct labor per unit x direct labor cost per hour
which of the six V's refers to the fact that the data can range from structured numeric data to unstructured data?
variety
the six V's
volume, velocity, variety, veracity, value, and vulnerability
