Exam 20: Budgetary Planning

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1,200 Sales budgeted for the quarter 456,000 Production capacity in units 472,000 How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

The budget committee would not normally include the

The production budget shows expected unit sales of 32,000. Beginning finished goods units are 3,600. Required production units are 33,600. What are the desired ending finished goods units?

A master budget consists of

If the required direct materials purchases are 24,000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds?

Grey Company has 24,000 units in beginning finished goods. If sales are expected to be 120,000 units for the year and Grey desires ending finished goods of 30,000 units, how many units must the company produce?

The master budget for a service enterprise

The important end-product of the operating budgets is the

The cash budget reflects

A manufacturing overhead budget is not needed if the company develops a predeter-mined overhead rate to apply overhead.

Which of the following statements about a budgeted income statement is not true?

In service enterprises, the critical factor in budgeting is coordinating materials and equipment with anticipated services.

Dart, Inc. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Lion Industries required production for June is 132,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 300,000 and 330,000 pounds, respectively. How many pounds of direct material Z must be purchased?

Budgeting and long-range planning are two terms that describe the same process.

Hyde Corp.'s cash budget showed total available cash less cash disbursements. What does this amount equal?

The budget is developed within the framework of a sales forecast.

The budget that is often considered to be the most important financial budget is the

Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser?

An appropriate activity index for a college or university for budgeting faculty positions would be the