a306 exam 3
A number of separate but interdependent budgets that formally lay out a company's
sales, production, and financial goals is contained in the _____ budget. - CORRECT
ANSWER-master
A detailed plan for the future that is usually expressed in formal quantitative terms is:
- CORRECT ANSWER-budget
A detailed schedule showing the expected sales for the budget period is presented
on the _____ budget - CORRECT ANSWER-sales
Developing goals for the budget is , _____ while _____ involves steps taken to
ensure that steps towards meeting the goal are being followed. - CORRECT
ANSWER-planning, control
In a manufacturing company, the ________ budget is used to determine the budgets
for manufacturing costs, including the direct materials budget, the direct labor
budget, and the manufacturing overhead budget. - CORRECT ANSWER-production
Gathering feedback to ensure that the plan is being followed is referred to as -
CORRECT ANSWER-control
Both the production and selling and administrative expense budgets are prepared
using information directly from the _____ budget - CORRECT ANSWER-sales
Budgets: - CORRECT ANSWER-communicate management's plan throughout the
organization
The cash budget uses information from several other budgets. Which of the following
budgets is NOT used to prepare the cash budget? - CORRECT
ANSWER-Production budget
A number of separate, but interdependent, budgets that formally lay out the
company's sales, production, and financial goals are contained in the _____ budget -
CORRECT ANSWER-master
The budgeted income statement does NOT rely on information from the _______
budget. - CORRECT ANSWER-production
The first step in the budgeting process is preparing the ______ budget. - CORRECT
ANSWER-sales
,The final schedule of the master budget is the: - CORRECT ANSWER-budgeted
balance sheet
In a manufacturing company, which budget is used as the basis for creating the
direct materials budget, the direct labor budget, and the manufacturing overhead
budget? - CORRECT ANSWER-Production budget
Master budget schedules: - CORRECT ANSWER--answer several key questions for
a company
-are based on estimates and assumptions
Which of the following budgets are directly based on information from the sales
budget? - CORRECT ANSWER--Selling and administrative expense budget
-Production budget
The annual master budget file includes the ________ from last year because it is
needed for the schedule of expected cash collections. - CORRECT
ANSWER-balance sheet
The cash budget: - CORRECT ANSWER-is prepared near the end of the master
budget process
Using budget assumptions when preparing the master budget: - CORRECT
ANSWER-makes it easier to answer "what-if" questions
Which of the following is needed to prepare a sales budget? - CORRECT
ANSWER-The budgeted number of units to be sold
ABC, Inc.'s expected sales for the first six months of the year are as follows.
Month
Expected Sales
January
$120,000
February
$150,000
March
$160,000
April
$200,000
May
$220,000
June
$250,000
, Experience has shown that 60% of sales are collected in the month of sale and 40%
are collected the month after sale. Calculate expected cash collections for the month
of April. - CORRECT ANSWER-$184,000
In a manufacturing company, the ______ budget is prepared right after the sales
budget. - CORRECT ANSWER-production
If inventory levels are _______, the result can lead to lost sales or last-minute,
high-cost production efforts. - CORRECT ANSWER-insufficient
In a manufacturing company, the ______ budget details the raw materials that must
be purchased to fulfill the production budget and provide for adequate inventories -
CORRECT ANSWER-direct materials
To calculate total sales on the sales budget, multiply budgeted sales in units by: -
CORRECT ANSWER-sales price per unit
Which of the following is needed to calculate raw materials to be purchased on the
direct materials budget? - CORRECT ANSWER--Raw materials required per unit
-Beginning inventory of raw materials
ABC, Inc.'s expected sales for the first six months of the year are as follows.
Month
Expected Sales
January
$120,000
February
$150,000
March
$160,000
April
$200,000
May
$220,000
June
$250,000
Experience has shown that 60% of sales are collected in the month of sale and 40%
are collected the month after sale. Calculate expected cash collections for the month
of March. - CORRECT ANSWER-$156,000
S&P Enterprises has scheduled direct material purchases of $100,000 in January,
$130,000 in February and $150,000 in March. The company pays for 75% of its
purchases in the month of purchase and 25% the month after the purchase.
A number of separate but interdependent budgets that formally lay out a company's
sales, production, and financial goals is contained in the _____ budget. - CORRECT
ANSWER-master
A detailed plan for the future that is usually expressed in formal quantitative terms is:
- CORRECT ANSWER-budget
A detailed schedule showing the expected sales for the budget period is presented
on the _____ budget - CORRECT ANSWER-sales
Developing goals for the budget is , _____ while _____ involves steps taken to
ensure that steps towards meeting the goal are being followed. - CORRECT
ANSWER-planning, control
In a manufacturing company, the ________ budget is used to determine the budgets
for manufacturing costs, including the direct materials budget, the direct labor
budget, and the manufacturing overhead budget. - CORRECT ANSWER-production
Gathering feedback to ensure that the plan is being followed is referred to as -
CORRECT ANSWER-control
Both the production and selling and administrative expense budgets are prepared
using information directly from the _____ budget - CORRECT ANSWER-sales
Budgets: - CORRECT ANSWER-communicate management's plan throughout the
organization
The cash budget uses information from several other budgets. Which of the following
budgets is NOT used to prepare the cash budget? - CORRECT
ANSWER-Production budget
A number of separate, but interdependent, budgets that formally lay out the
company's sales, production, and financial goals are contained in the _____ budget -
CORRECT ANSWER-master
The budgeted income statement does NOT rely on information from the _______
budget. - CORRECT ANSWER-production
The first step in the budgeting process is preparing the ______ budget. - CORRECT
ANSWER-sales
,The final schedule of the master budget is the: - CORRECT ANSWER-budgeted
balance sheet
In a manufacturing company, which budget is used as the basis for creating the
direct materials budget, the direct labor budget, and the manufacturing overhead
budget? - CORRECT ANSWER-Production budget
Master budget schedules: - CORRECT ANSWER--answer several key questions for
a company
-are based on estimates and assumptions
Which of the following budgets are directly based on information from the sales
budget? - CORRECT ANSWER--Selling and administrative expense budget
-Production budget
The annual master budget file includes the ________ from last year because it is
needed for the schedule of expected cash collections. - CORRECT
ANSWER-balance sheet
The cash budget: - CORRECT ANSWER-is prepared near the end of the master
budget process
Using budget assumptions when preparing the master budget: - CORRECT
ANSWER-makes it easier to answer "what-if" questions
Which of the following is needed to prepare a sales budget? - CORRECT
ANSWER-The budgeted number of units to be sold
ABC, Inc.'s expected sales for the first six months of the year are as follows.
Month
Expected Sales
January
$120,000
February
$150,000
March
$160,000
April
$200,000
May
$220,000
June
$250,000
, Experience has shown that 60% of sales are collected in the month of sale and 40%
are collected the month after sale. Calculate expected cash collections for the month
of April. - CORRECT ANSWER-$184,000
In a manufacturing company, the ______ budget is prepared right after the sales
budget. - CORRECT ANSWER-production
If inventory levels are _______, the result can lead to lost sales or last-minute,
high-cost production efforts. - CORRECT ANSWER-insufficient
In a manufacturing company, the ______ budget details the raw materials that must
be purchased to fulfill the production budget and provide for adequate inventories -
CORRECT ANSWER-direct materials
To calculate total sales on the sales budget, multiply budgeted sales in units by: -
CORRECT ANSWER-sales price per unit
Which of the following is needed to calculate raw materials to be purchased on the
direct materials budget? - CORRECT ANSWER--Raw materials required per unit
-Beginning inventory of raw materials
ABC, Inc.'s expected sales for the first six months of the year are as follows.
Month
Expected Sales
January
$120,000
February
$150,000
March
$160,000
April
$200,000
May
$220,000
June
$250,000
Experience has shown that 60% of sales are collected in the month of sale and 40%
are collected the month after sale. Calculate expected cash collections for the month
of March. - CORRECT ANSWER-$156,000
S&P Enterprises has scheduled direct material purchases of $100,000 in January,
$130,000 in February and $150,000 in March. The company pays for 75% of its
purchases in the month of purchase and 25% the month after the purchase.
