FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Match each phrase that follows with the term a-f it describes.. -plans an important role for organizations in planning, directing, and controlling a company's future goals

A) budget
B) capital expenditures budget
C) sales budget
D) production budget
E) cash budget
F) budgeted balance sheet

G) A) and D)
H) B) and E)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Tara Company's budget shows the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000.Experience has shown that payment for credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible.How much cash will Tara Company expect to collect in November as a result of current and past credit sales?

A) $19,700
B) $28,400
C) $30,000
D) $31,100

E) B) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

What is the budgeted unit of inventory for March 31?

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called master budgeting.

A disadvantage of static budgets is that they

Flexible budgeting builds the effect of changes in level of activity into the budget system.

Woodpecker Co.has $296,000 in accounts receivable on January 1.Budgeted sales for January are $860,000.Woodpecker Co.expects to sell 20% of its merchandise for cash.Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month.The January cash collections from sales are

The cash payments expected for Finch Company in the month of April are

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities.Which of the following is not considered a human behavior problem?

The budget that summarizes future plans for the acquisition of fixed assets is

Budgeted production for product ZZZ during the month is

Which of the following would not be used in preparing a cash budget for October?

Truliant Co.sells a product called Withitall and has predicted the following sales for the first four months of the current year: Ending inventory for each month should be 20% of next month's sales.How many units should be produced in February?

Kid's World Industries has projected sales of 67,000 machines for the current year.The estimated January 1 inventory is 6,000 units, and the desired December 31 inventory is 15,000 units.What is the budgeted production in units for the year?

The Ruff Jeans Company produces two different types of jeans, Simple Life, and Fancy Life.The company sales budget estimates that 350,000 of the Simple Life jeans and 200,000 of the Fancy Life jeans will be sold during the current year.The production budget requires 353,500 units of Simple Life and 196,000 Fancy Life be manufactured.The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread.The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread.Each yard of denim material costs $3.25, the zipper costs $0.75 each, and the thread is $0.02 per yard.There is enough material to make 2,000 jeans of each type at the beginning of the year.The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type.Prepare a direct materials purchases budget.

Match each phrase that follows with the term a-e it describes. -actions to achieve budgeted goals

Chelsa Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power.Total fixed costs are $23,000.At 8,000 units of production, a flexible budget would show

What is the amount of cash excess or deficiency after considering the minimum cash balance required for February?

Sleep Tight, Inc.manufactures bedding sets.The budgeted production is for 52,000 comforters this year.Each comforter requires 1.5 hours to cut and sew the material.The cost of cutting and sewing labor is $12.50 per hour.Determine the direct labor budget for this year.

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?