Question 1

A budget aids in

Accepted Answer

A) communication. 
B) motivation. 
C) coordination. 
D) all of the above. 
A) communication. 
B) motivation. 
C) coordination. 
D) all of the above.

Question 2

Which of the following equations can be used to budget purchases?
(BI = beginning inventory,EI = ending inventory desired,CGS = budgeted cost of goods sold,P = budgeted purchases)

Accepted Answer

A) P = CGS + BI - EI 
B) P = CGS + BI 
C) P = CGS + EI + BI 
D) P = CGS + EI - BI 
A) P = CGS + BI - EI 
B) P = CGS + BI 
C) P = CGS + EI + BI 
D) P = CGS + EI - BI

Question 3

Budgeted sales for the first six months the year for Stewart Corporation are listed below:
                   JANUARY        FEBRUARY      MARCH       APRIL       MAY        JUNE              UNITS:        5,000       6,000      7,000      6,000       4,000       3,000      
Stewart Corporation has a policy of maintaining an inventory of finished goods equal to 35 percent of the next month's budgeted sales.How many units has Stewart Corporation budgeted to produce in the first quarter of the year?

Accepted Answer

A) 18,350 units 
B) 17,650 units 
C) 22,000 units 
D) 22,050 units 
A) 18,350 units 
B) 17,650 units 
C) 22,000 units 
D) 22,050 units

Question 4

Chronologically,in what order are the sales,purchases,and production budgets prepared?

Accepted Answer

A) sales,purchases,production 
B) sales,production,purchases 
C) production,sales,purchases 
D) purchases,sales,production 
A) sales,purchases,production 
B) sales,production,purchases 
C) production,sales,purchases 
D) purchases,sales,production

Question 5

Measuring the firm's performance against established objectives is part of which of the following functions?

Accepted Answer

A) Planning 
B) Controlling 
C) Organizing 
D) Staffing 
A) Planning 
B) Controlling 
C) Organizing 
D) Staffing

Question 6

A budget that is prepared by adding a new budget month as each month expires is referred to as a(n)______________________________.

Accepted Answer

The answer of A budget that is prepared by adding...

Question 7

A budget manual should include a statement of the budgetary purpose and its desired results.

Accepted Answer

A) True 
 B)False

Question 8

The master budget is a

Accepted Answer

A) static budget. 
B) flexible budget. 
C) qualitative expression of a prior goal. 
D) qualitative expression of a future goal. 
A) static budget. 
B) flexible budget. 
C) qualitative expression of a prior goal. 
D) qualitative expression of a future goal.

Question 9

Which of the following is not an "operating" budget?

Accepted Answer

A) sales budget 
B) production budget 
C) purchases budget 
D) capital budget 
A) sales budget 
B) production budget 
C) purchases budget 
D) capital budget

Question 10

The cash budget is constructed after all other budgets have been completed.

Accepted Answer

A) True 
 B)False

Question 11

Operational management should be directly involved with the strategic planning of an organization.

Accepted Answer

A) True 
 B)False

Question 12

Most tactical plans are single use plans.

Accepted Answer

A) True 
 B)False

Question 13

An annual budget is an example of a single use tactical plan.

Accepted Answer

A) True 
 B)False

Question 14

A calendar of scheduled budgetary activities helps to coordinate the budgeting process.

Accepted Answer

A) True 
 B)False

Question 15

The operating budget is expressed both in units and dollars.

Accepted Answer

A) True 
 B)False

Question 16

Top management should be directly involved in strategic planning for an organization.

Accepted Answer

A) True 
 B)False

Question 17

The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.

Accepted Answer

A) True 
 B)False

Question 18

The amount of raw material purchased in a period may be different than the amount of material used that period because

Accepted Answer

A) the number of units sold may be different from the number of units produced. 
B) finished goods inventory may fluctuate during the period. 
C) the raw material inventory may increase/decrease during the period. 
D) companies often pay for material in the period after it is purchaseD. 
A) the number of units sold may be different from the number of units produced. 
B) finished goods inventory may fluctuate during the period. 
C) the raw material inventory may increase/decrease during the period. 
D) companies often pay for material in the period after it is purchaseD.

Question 19

A budget that is developed by both top management and operating personnel is referred to as a(n)______________________________.

Accepted Answer

participat

Question 20

Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 6 \text { per train } \
\text { Administration } & \$ 12,000 \text { per month} \
\text { Indirect factory labor } & \$ 4 \text { per train } \
\text { Direct factory labor } & \$ 6 \text { per train }
\end{array}$

The following information applies to the upcoming month of July for Priceless Memories Company:
Budgeted production                   1,500 unit:
Budgeted sales                              1,300 unit:

Refer to Priceless Memories Company.What is Priceless Memories' budgeted factory labor cost for July?

Accepted Answer

A) $13,000 
B) $24,000 
C) $34,000 
D) $15,000 
A) $13,000 
B) $24,000 
C) $34,000 
D) $15,000

A budget aids in

Which of the following equations can be used to budget purchases? (BI = beginning inventory,EI = ending inventory desired,CGS = budgeted cost of goods sold,P = budgeted purchases)

Chronologically,in what order are the sales,purchases,and production budgets prepared?

Measuring the firm's performance against established objectives is part of which of the following functions?

A budget that is prepared by adding a new budget month as each month expires is referred to as a(n)______________________________.

A budget manual should include a statement of the budgetary purpose and its desired results.

The master budget is a

Which of the following is not an "operating" budget?

The cash budget is constructed after all other budgets have been completed.

Operational management should be directly involved with the strategic planning of an organization.

Most tactical plans are single use plans.

An annual budget is an example of a single use tactical plan.

A calendar of scheduled budgetary activities helps to coordinate the budgeting process.

The operating budget is expressed both in units and dollars.

Top management should be directly involved in strategic planning for an organization.

The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.

The amount of raw material purchased in a period may be different than the amount of material used that period because

A budget that is developed by both top management and operating personnel is referred to as a(n)______________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 8: The Master Budget

A budget aids in

Which of the following equations can be used to budget purchases? (BI = beginning inventory,EI = ending inventory desired,CGS = budgeted cost of goods sold,P = budgeted purchases)

Chronologically,in what order are the sales,purchases,and production budgets prepared?

Measuring the firm's performance against established objectives is part of which of the following functions?

A budget that is prepared by adding a new budget month as each month expires is referred to as a(n)______________________________.

A budget manual should include a statement of the budgetary purpose and its desired results.

The master budget is a

Which of the following is not an "operating" budget?

The cash budget is constructed after all other budgets have been completed.

Operational management should be directly involved with the strategic planning of an organization.

Most tactical plans are single use plans.

An annual budget is an example of a single use tactical plan.

A calendar of scheduled budgetary activities helps to coordinate the budgeting process.

The operating budget is expressed both in units and dollars.

Top management should be directly involved in strategic planning for an organization.

The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.

The amount of raw material purchased in a period may be different than the amount of material used that period because

A budget that is developed by both top management and operating personnel is referred to as a(n)______________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters