Exam 6: Planning, The Balanced Scorecard, and Budgeting

In the budgeting process a company can use either an ideal for normal standard.What is the difference between an ideal standard and a normal standard? What impact do you think each would have on employee morale?

Budgets are prepared by the top-level executives of Phififfer Company.This is an example of which type of budgeting?

The Olpe Corporation budgeted production for the first three months of 2011 is listed below.Each unit produced requires 5 pounds of direct material that cost $8 per pound.Hoxie wants to have 5% on next month's production in ending inventory each month.Hoxie receives a 2% discount on all purchases paid made during the month and pays 80% of its materials bill during the month. Accounts Payable Balance $110,000 on January 1,2011 Raw materials inventory 30,000 pounds at $8 - $240,000 Required: (A.)How many pounds and what is the price of the direct material Hoxie plans to purchase in February? (B.)How much cash does Hoxie plan to pay for materials in February? (C.)How much will the ending balance of accounts payable be February?

Use the following to answer questions Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below: Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory. -What are Hepburn Corporation's expected cash collections for April?

Which of the following is not part of expenditure process planning?

Which of the following drives all other operating budgets?

Use the following to answer questions Waterford Enterprises' unit production was budgeted for the first six months of its fiscal year as follows: Each unit of product requires 15 pounds of raw material and management wants to maintain an ending inventory of raw material equal to 12% of the next month's production requirements. -The direct materials purchases budget for June is:

The desired ending finished goods inventory would most likely be shown on the:

The sales budget and the desired level of ending finished goods inventory are primary inputs into the preparation of the:

Describe how the sales budget is related to the production budget.

Use the following to answer questions Trego Company's unit sales were budgeted for the first six months of its fiscal year as follows: Management wants to maintain an ending inventory equal to 8% of the next month's sales. -The production requirements for June are:

Which of the following must be estimated before a production budget can be completed?

Which of the following does not affect the cost of preparing a budget?

Takai Corporation has a sales price of $20 per unit.Unit sales information is presented below: Management estimates that 4% of credit sales (in dollars)are uncollectible.Of the remaining credit sales,60 percent are collected in the month of sale and the remainder in the following month.What are Takai's estimated cash collections and sales revenue for January?

Use the following to answer questions Trego Company's unit sales were budgeted for the first six months of its fiscal year as follows: Management wants to maintain an ending inventory equal to 8% of the next month's sales. -The production requirements for May are:

Gove Company has an accounts receivable balance of $357,000 at the beginning of the year.Credit sales for the year are projected at $975,000.Management estimates that 95% of the beginning accounts receivable plus 75% of the credit sales will be collected during the period.What is the projected balance of the ending accounts receivable?

The strategy whereby a company uses the current period's budget as a starting point in preparing next period's budget is referred to as:

Ideal standards used in the budgeting process -

Use the following to answer questions Redcoat Company's unit sales were budgeted for the first six months of its fiscal year as follows: Management wants to maintain an ending inventory equal to 15% of the next month's sales. -The unit production requirements for February are:

Use the following to answer questions Redcoat Company's unit sales were budgeted for the first six months of its fiscal year as follows: Management wants to maintain an ending inventory equal to 15% of the next month's sales. -The unit production requirements for May are: