Chapter 9 Quiz
Mockingbird Company expects to sell 5,000 bird perches in January and 7,500 in February for $4 each. What will be the total sales revenue reflected in the sales budget for those months?
January 20,000 and February 30,000
Which is an advantage of zero-based budgeting?
Zero-based budgeting forces managers to justify each dollar in the budget to ensure that some expenses are lower in a current year compared to what they were in previous years.
The ______ budget is a component in a financial budget
cash
Strategic planning is beneficial because the organization can:
establish long term goals that extend 5-10 years into the future
Which is a potential disadvantage of participative budgeting?
managers may build slack into the budget
"The comprehensive budget" is best described by which of the following terms?
master budget
On the direct materials budget, the total quantity of direct materials to purchase is computed as:
quantity needed for production + desired end inventory of DM - beginning inventory of DM
The _______ budget begins with the number of units to be sold
sales
The ________ is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process
sales budget
Dallas corporation had beginning inventory of 18,700 units and expects sales of 80,000 units during the year. Desired ending inventory is 18,400 units. How many units should Dallas Corporation produce?
79,700
