ADV MGT 6655 SU17 EXAM
QUESTIONS AND ANSWERS 100%
CORRECT
Which of the following listings correctly describes the order in which the four types of
budgets must be prepared? - ANSWER-Sales, production, direct materials
purchases, cash disbursements.
Fargo Mfg., a small business, is developing a budget for next year. Which of the
following steps should Fargo perform first? - ANSWER-Forecast Fargo's sales
volume.
Which one of the following best describes the order in which budgets should be
prepared when developing the annual master operating budget? - ANSWER-
Revenue budget, production budget, direct material budget.
The foundation of a profit plan is the - ANSWER-Sales forecast.
The operating budget process usually begins with the - ANSWER-Sales budget.
Which one of the following schedules would be the last item to be prepared in the
normal budget preparation process? - ANSWER-Cash budget.
The master budget process usually begins with the - ANSWER-Sales budget.
The production budget process usually begins with the - ANSWER-Sales budget.
Individual budget schedules are prepared to develop an annual comprehensive or
master budget. The budget schedule that would provide the necessary input data for
the direct labor budget would be the - ANSWER-Production budget.
All of the following are considered operating budgets except the - ANSWER-Capital
budget.
Which of the following types of budgets is the last budget to be produced during the
budgeting process? - ANSWER-Cash
In an organization that plans by using comprehensive budgeting, the master budget
is - ANSWER-A compilation of all the separate operational and financial budget
schedules of the organization.
While an operating budget is a key element in planning and control, it is not likely to -
ANSWER-Set out long-range, strategic concepts.
After the goals of the company have been established and communicated, the next
step in the planning process is development of the - ANSWER-Sales budget.
, Pro forma financial statements are part of the budgeting process. Normally, the last
pro forma statement prepared is the - ANSWER-Statement of cash flows.
The master budget - ANSWER-Contains the operating budget.
The preparation of a comprehensive master budget culminates with the preparation
of the - ANSWER-Cash budget.
Wilson Company uses a comprehensive planning and budgeting system. The proper
order for Wilson to prepare certain budget schedules would be - ANSWER-Cost of
goods sold, income statement, balance sheet, and statement of cash flows.
Which one of the combinations listed correctly depicts the chronological order of
preparation for the following budgets?
Cost of goods sold budget
Production budget
Purchases budget
Administrative budget - ANSWER-II, III, I, IV.
Which one of the following items should be done first when developing a
comprehensive budget for a manufacturing company? - ANSWER-Development of a
sales budget.
Which one of the following items is the last schedule to be prepared in the normal
budget preparation process? - ANSWER-Cash budget.
There are various budgets within the master budget cycle. One of these budgets is
the production budget. Which one of the following best describes the production
budget? - ANSWER-It is calculated from the desired ending inventory and the sales
forecast.
When preparing the series of annual operating budgets, management usually starts
the process with the - ANSWER-Sales budget.
Which of the following is normally included in the operating budget? - ANSWER-
Selling expense budget.
The starting point for creating a master budget for a proprietary secretarial school
would be - ANSWER-Forecasting enrollment.
The cash budget must be prepared before completing the - ANSWER-Forecasted
balance sheet.
Which of the following is normally included in the financial budget of a firm? -
ANSWER-Budgeted balance sheet.
Many companies use comprehensive budgeting in planning for the next year's
activities. When both an operating budget and a financial budget are prepared, which
QUESTIONS AND ANSWERS 100%
CORRECT
Which of the following listings correctly describes the order in which the four types of
budgets must be prepared? - ANSWER-Sales, production, direct materials
purchases, cash disbursements.
Fargo Mfg., a small business, is developing a budget for next year. Which of the
following steps should Fargo perform first? - ANSWER-Forecast Fargo's sales
volume.
Which one of the following best describes the order in which budgets should be
prepared when developing the annual master operating budget? - ANSWER-
Revenue budget, production budget, direct material budget.
The foundation of a profit plan is the - ANSWER-Sales forecast.
The operating budget process usually begins with the - ANSWER-Sales budget.
Which one of the following schedules would be the last item to be prepared in the
normal budget preparation process? - ANSWER-Cash budget.
The master budget process usually begins with the - ANSWER-Sales budget.
The production budget process usually begins with the - ANSWER-Sales budget.
Individual budget schedules are prepared to develop an annual comprehensive or
master budget. The budget schedule that would provide the necessary input data for
the direct labor budget would be the - ANSWER-Production budget.
All of the following are considered operating budgets except the - ANSWER-Capital
budget.
Which of the following types of budgets is the last budget to be produced during the
budgeting process? - ANSWER-Cash
In an organization that plans by using comprehensive budgeting, the master budget
is - ANSWER-A compilation of all the separate operational and financial budget
schedules of the organization.
While an operating budget is a key element in planning and control, it is not likely to -
ANSWER-Set out long-range, strategic concepts.
After the goals of the company have been established and communicated, the next
step in the planning process is development of the - ANSWER-Sales budget.
, Pro forma financial statements are part of the budgeting process. Normally, the last
pro forma statement prepared is the - ANSWER-Statement of cash flows.
The master budget - ANSWER-Contains the operating budget.
The preparation of a comprehensive master budget culminates with the preparation
of the - ANSWER-Cash budget.
Wilson Company uses a comprehensive planning and budgeting system. The proper
order for Wilson to prepare certain budget schedules would be - ANSWER-Cost of
goods sold, income statement, balance sheet, and statement of cash flows.
Which one of the combinations listed correctly depicts the chronological order of
preparation for the following budgets?
Cost of goods sold budget
Production budget
Purchases budget
Administrative budget - ANSWER-II, III, I, IV.
Which one of the following items should be done first when developing a
comprehensive budget for a manufacturing company? - ANSWER-Development of a
sales budget.
Which one of the following items is the last schedule to be prepared in the normal
budget preparation process? - ANSWER-Cash budget.
There are various budgets within the master budget cycle. One of these budgets is
the production budget. Which one of the following best describes the production
budget? - ANSWER-It is calculated from the desired ending inventory and the sales
forecast.
When preparing the series of annual operating budgets, management usually starts
the process with the - ANSWER-Sales budget.
Which of the following is normally included in the operating budget? - ANSWER-
Selling expense budget.
The starting point for creating a master budget for a proprietary secretarial school
would be - ANSWER-Forecasting enrollment.
The cash budget must be prepared before completing the - ANSWER-Forecasted
balance sheet.
Which of the following is normally included in the financial budget of a firm? -
ANSWER-Budgeted balance sheet.
Many companies use comprehensive budgeting in planning for the next year's
activities. When both an operating budget and a financial budget are prepared, which
