FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Short Answer

Review LaterAdd Note

Review Later

Match each phrase that follows with the term (a-e) it describes. -Shows expected results at several activity levels A)Static budget B)Flexible budget C)Master budget D)Sales budget E)Production budget

Correct Answer

verified

Show Answer

Question 32

Short Answer

Review LaterAdd Note

Review Later

Match each phrase that follows with the term (a-e) it describes. -Occurs when employee self-interests are different from company goals A)Planning B)Directing C)Controlling D)Budget slack E)Goal conflict

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Which of the following budgets allows for adjustments in activity levels?

Motorcycle Manufacturers, Inc., projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. The budgeted production for the year is

Purple Co.'s production budget for Product X for the year ending December 31 is as follows: In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows: Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production).

The budgeted volume of production is based on the sum of (1) the expected sales volume and (2) the desired ending inventory, less (3) the estimated beginning inventory.

The staffing budget in a nonmanufacturing business is highly inflexible to service demands.

The first budget to be prepared is usually the sales budget.

As of January 1 of the current year, Grackle Company had accounts receivable of $50,000. The sales for January, February, and March were $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales) , 60% are collected in the month of sale, with the remaining 40% collected in the following month. The total cash collected (both from accounts receivable and cash sales) in the month of February is

A series of budgets for varying levels of activity is termed a(n) _____ budget.

-Based on the following production and sales estimates for May for Heron Company, determine the number of units expected to be manufactured in May.

Past performance is the best overall basis for evaluating current performance and assessing the need for corrective action.

The financial budgets of a business include the cash budget, the capital expenditures budget, and the budgeted balance sheet.

Part of the cash budget is based on information drawn from the capital expenditures budget.

If budgeted beginning finished goods inventory is $8,000, budgeted ending finished goods inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted cost of goods manufactured should be

Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $33,000, and $27,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $35,000, and $21,000, respectively. Direct materials purchases were $575,000, direct labor was $212,000 for the year, and factory overhead was $156,000. Prepare a cost of goods sold budget for Sleep Tight, Inc.

The financial budgets are prepared before the operating budgets.

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. -Total budgeted sales of both products for the year would be

Based on the following production and sales data of Frixion Co. for March of the current year, prepare (a) a sales budget and (b) a production budget.

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. -Consider Derek's budget information: Materials to be used total $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory on January 1 is $189,100; and work in progress inventory on December 31 is $197,600. The budgeted cost of goods manufactured for the year is