FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing

A) budgetary slack
B) padding
C) goal conflict
D) cushions

E) All of the above
F) None of the above

Correct Answer

verified

C

Question 2

True/False

Review LaterAdd Note

Review Later

Employees view budgeting more positively when goals are established for them by senior management.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

As of January 1 of the current year, the Grayson Company had accounts receivables of $40,000.The sales for January, February, and March were as follows: $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.What is the total cash collected both from accounts receivable and for cash sales in the month of January?

The cash collections expected in November from accounts receivable are projected to be

The production budgets are used to prepare which of the following budgets?

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

Consider Derek's budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory January 1, $189,100; and work in progress inventory on December 31, $197,600.What is the budgeted cost of goods manufactured for the year?

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

Stephanie Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 108,000 units, and desired ending inventory is 90,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb.per unit @ $0.70 per pound Material B 1.00 lb.per unit @ $1.70 per pound Material C 1.20 lb.per unit @ $1.00 per pound The dollar amount of material A used in production during the year is

The capital expenditures budget is part of the planned investing activities of a company.

Estimated cash payments are planned reductions in cash from all of the following except

Fashion Jeans, Inc.sells two lines of jeans; Simple Life and Fancy Life.Simple Life sells for $85, and Fancy Life sells for $100.The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible.The estimated sales for Simple are: January, 20,000 jeans; February, 27,500 jeans; and March, 25,000 jeans.The estimated sales for Fancy are: January, 18,000 jeans; February, 19,000; and March, 20,500 jeans.What are the expected cash receipts for the month of March?

Production and sales estimates for June are as follows: The budgeted total sales for June is

Once a static budget has been determined, it is changed regularly as the underlying activity changes.

A formal written statement of management's plans for the future, expressed in financial terms, is a

Big Wheel, Inc.collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.Sales on account are budgeted to be $150,000 for March and receipts from sales on account total $162,500 in April.What are budgeted sales on account for April?

Match each phrase that follows with the term a-e it describes. -setting goals

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.What is the budgeted production in units for the year?

Flanders Industries collects 35% of its sales on account in the month of the sale, and 65% in the month following the sale.Sales on account are budgeted to be $175,000 for May and $225,000 for June.What are the budgeted cash receipts from sales on account for June?

The treasurer of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year: The company expects to sell about 35% of its merchandise for cash.Of sales on account, 80% are collected in full in the month of the sale, and the remainder in the month following the sale.One-fourth of the manufacturing costs are paid in the month in which they are incurred, and the other three-fourths in the following month.Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses.Insurance is paid in February, and property taxes are paid yearly in September.A $40,000 installment on income taxes is to be paid in April.Of the remainder of the selling and administrative expenses, one-half are to be paid in the month in which they are incurred and the balance in the following month.Capital additions of $250,000 are paid in March. Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000.Current liabilities as of March 1 are accounts payable of $121,500 $102,000 for materials purchases and $19,500 for operating expenses.Management desires to maintain a minimum cash balance of $25,000. Prepare a monthly cash budget for March and April.