chp 8

The amount of goods for resale to be purchased from suppliers during the period is shown on the ______ ______ budget.

merchandise purchases

developing goals and preparing various budgets to achieve those goals is part of ___

planning

Budgets are used for two distinct purposes:

planning and control

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

Because all other parts of the budget depend on it, if the ______ budget is inaccurate, the rest of the budget will be inaccurate

sales

a manager cannot complain that the budget was unrealistic and impossible to meet when an _____ - ______ budget is in place

self - imposed

which of the following budgets shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

the budgeted income statement

borrowing money is required whenever

- cash deficiency -cash excess is less than the minimum required cash balance

a number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the ____ budget

- master

purpose of a budget should be to

- measure operating results -establish goals - isolate areas needing attention

which of the following is needed to calculate raw materials to be purchased on the direct materials budget?

- raw materials required per unit - beg. inv. of raw materials

limitations of self-imposed budgeting include ______

- suboptimal budget recommendations - budgetary slack

when profit targets are set by top managers ____

- waster may occur - too much slack may be allowed - goals may be unrealistically high

which of the following budgets are needed to calculate unit production costs?

DL, DM, MO

All costs of production other than direct materials and direct labor are shown on the _____ _____ budget:

MO

on the cash budget what is subtracted from total cash available to find cash excess or deficiency

cash disbursements

budgets

communicate management's plan throughout the organization

a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed is called a ____ or perpetual budget

continuous

gathering feedback to ensure that the plan is being followed is referred to as

control

the number of working hours required to satisfy the production budget is shown on the _____ ______ budget

direct labor

in a manufacturing company the _____ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories

direct materials

which of the following budgets are directly based on information from the sales budget?

-production budget -sell & admin. budget

cash budget includes what 4 major sections?

-receipts - disbursements - cash excess or deficiency - financing

the ending finished goods inventory budget computes the _____ units

cost of unsold

in a manufacturing company, the ____ budget is used to determine the budget for manufacturing costs, including the dm budget, dl budget, and MO budget

production

the DL budget is based directly on the ____ budget

production

in a manufacturing company, the ______ ______ budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories

Direct materials

under the concept of _____ _____ managers should only be held accountable for items they can actually control

responsibility accounting

Budgeted expenses for areas other than manufacturing are shown on the ____ budget:

selling and admin.

variable selling and administrative costs are calculated by multiplying the budgeted units ______ by the variable selling and administrative per unit

sold